Question
Prepare adjusting journal entries and an adjusted trial balance. Ad Men Advertising, Inc. Trial Balance November 30, 2012 Account Debit Credit Cash $ 30,100 Accounts
Prepare adjusting journal entries and an adjusted trial balance.
Ad Men Advertising, Inc. Trial Balance November 30, 2012 | ||
Account | Debit | Credit |
Cash | $ 30,100 |
|
Accounts Receivable | 22,800 |
|
Prepaid Insurance | 2,700 |
|
Supplies | 1,200 |
|
Equipment | 59,000 |
|
Accumulated Depreciation, Equipment |
| $ 50,000 |
Accounts Payable |
| 3,100 |
Salaries Payable |
|
|
Unearned Service Revenue |
| 2,900 |
Common Stock |
| 25,000 |
Retained Earnings |
| 25,300 |
Dividends | 1,000 |
|
Service Revenue |
| 13,900 |
Salaries Expense | 3,400 |
|
Insurance Expense |
|
|
Depreciation Expense, Equipment |
|
|
Utilities Expense |
|
|
Supplies Expense |
|
|
Total | $120,200 | $120,200 |
Insurance coverage still remaining at November 30, $700.
Supplies used during the month, $400.
Depreciation for the month, $3,400.
Accrued utilities expense at November 30, $700. (use Accounts Payable as the liability account needed)
Accrued salaries at November 30, $1,000.
Service revenue still unearned at November 30, $1,300.
Part A
Open T-accounts for the accounts listed in the trial balance and insert their November 30 unadjusted balances. Journalize the adjusting entries and post them to the T-accounts. Reference the posted amounts by letter, (a) through (f). Calculate the adjusted balance in each account.
Part B
Prepare the adjusted trial balance at November 30, 2012.
Part C
How will the company use the adjusted trial balance?
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