Preparing an Adjusted Trial Balance

Walker Corp. provides the following information relating to adjusting entries required at the end of its fiscal year, December 31, 2020.

a. Interest expense of $150 for the month of December 2020 will be paid in January 2021. b. Unbilled revenue for services performed in December 2020 is $500. The company will prepare and forward invoices for this amount in January 2021 to customers with a 30-day collection term. c. $1,500 cash was received in advance on November 30, 2020, for future services to be performed by Walker Corp. and was recorded as deferred service revenue. The services were performed on December 20, 2020. d. Walker Corp. acquired a two-year insurance policy on January 1, 2020, for $4,800 cash that was recorded initially as prepaid insurance. e. Depreciation on equipment is $6,000

The following is the unadjusted trial balance for Walker Corp. as of December 31, 2020. Prepare an adjusted trial balance after posting of adjusting entries were made for the above information. Assume that no adjusting journal entries were recorded in 2020 prior to year-end.

	Unadjusted Trial Balance		Adjusted Trial Balance
Accounts	Debit	Credit	Debit	Credit
Cash	$8,000	$
Accounts receivable	3,500
Supplies	1,800
Prepaid insurance	4,800
Equipment	25,000
Accumulated depreciation
Accounts payable		1,200
Interest payable
Deferred revenue		1,500
Note payable		10,000
Common stock		25,000
Retained earnings
Service revenue		9,000
Salaries expense	3,600
Depreciation expense
Interest expense
Insurance expense
Totals	$46,700	$46,700