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P3-45 Preparing adjusting entries and preparing an adjusted trial balance This problem continues the Davis Consulting situation from Problem P2-43 of Chapter 2. You will

P3-45 Preparing adjusting entries and preparing an adjusted trial balance This problem continues the Davis Consulting situation from Problem P2-43 of Chapter 2. You will need to use the unadjusted trial balance and posted T-accounts that you prepared in Problem P2-43. The unadjusted trial balance at December 31, 2014 is duplicated below: Account Title Office Supplies Cash Debit Credit Accounts Receivable Equipment Furniture Accounts Payable Unearned Revenue Davis, Capital Davis, Withdrawals Service Revenue Rent Expense Utilities Expense Total Balance $ 16,400 $ 26,700 $ 26,700 4,200 2,600 18,000 550 1,200 900 1,800 $ 4,700 1,400 1,400 250 DAVIS CONSULTING Unadjusted Trial Balance December 31, 2014 At December 31, the business gathers the following information for the adjusting entries: a. Accrued service revenue, $550. b. Earned $700 of the service revenue collected in advance on December 21. c. Office supplies on hand, $200. d. Depreciation on equipment, $30; Depreciation on furniture, $70. e. Accrued $685 expense for administrative assistant?s salary. Requirements 1. Journalize and post the adjusting entries using the T-accounts that you completed in Problem P2-43. In the T-accounts, denote each adjusting amount as Adj. and an account balance as Balance. 2. Prepare an adjusted trial balance as of December 31, 2014.image text in transcribed

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