Peter Bitter's Legal Services

Worksheet

for the Month Ended December $31,20**$Prepare the following adjusting entries for Peter Bitter$$s Legal Services firm and complete all columns of

the worksheet. $($LO$2,$ LO$3,$ LO$4)$

a$.$ An adjustment for office supplies is required. The ending inventory as of December $31$ is $$300.$

Expense the office supplies used up over the period.

b$.$ The landlord required prepayment of rent when Peter$$s firm moved into the premises. The

amount of $$1,200$ has now been used up and needs to be written off as an expense.

c$.$ At year$-$end, the firm owes three days$$ salary to the assistant at the rate of $$90$ per day.

d$.$ The firm is taking $$300$ depreciation on office furniture and equipment.

PRACTICE

EXCEL

CHAPTER $8$ Adjusting Accounts for Financial Statements

$217$

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Peter Bitter$$s Legal Services

Worksheet

for the Month Ended December $31,20**$

Account Titles Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Dr$.$ Cr$.$ Dr$.$ Cr$.$ Dr$.$ Cr$.$ Dr$.$ Cr$.$ Dr$.$ Cr$.$

$100$ General Bank Account $5,230$

$115$ Trust Bank Account $3,200$

$120$ Accounts Receivable $3,500$

$128$ Prepaid Expense $($Rent$)3,000$

$130$ Office Supplies $1,200$

$158$ Office Furniture and Equipment $22,000$

$159$ Dep. Office Furniture and Equipment $600$

$200$ Accounts Payable$/$General Liabilities $6,500$

$215$ Trust Funds Owed $3,200$

$220$ Accrued Salaries Payable

$300$ Peter Bitters, Capital $13,170$

$350$ Peter Bitters, Drawings $6,000$

$400$ Fees Earned $29,000$

$511$ Salaries Expense $4,000$

$522$ Depreciation Expense $250$

$527$ Insurance$$Professional Liability $450$

$534$ Membership$/$Professional Dues $230$

$535$ Office Supplies$/$General Expense $250$

$538$ Rent Expense $3,000$

$565$ Telephone Expense $160$

Totals $52,47052,470$