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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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