Previous Trial Balance 1/31/2020
Case 3 Now it is time to make some adjusting journal entries. Based on what you learned in the text using the Sample Company, you are to make the following changes to the Case 3 company you modified in Chapter 8: Open and review your previously customized report named Trial Balance 1/31/2020. 2 Record the appropriate adjusting journal entries on 1/31/2020 based on the following: a. An inventory of supplies reveals that only $200 of supplies remain as of 1/31/2020. (You'll need to add a new Supplies account - Account Type: Expenses, Detail Type: Supplies & Materials, Name: Supplies) b. $1,500 of prepaid expenses expired (representing prepaid insurance in the month of January. C. A bill for $350 was received and recorded in the next month from FixIt, Inc. for repairs performed in the current month. Create a new liability account like you did earlier in the chapter. d. Phone Consulting services recorded on invoice #1003 for $210 to Diamond Girl, Inc. were never performed even though invoiced. Thus, the revenue had not been earned. Create a new liability account like you did earlier in the chapter. e. Phone Consulting services of $1,800 were performed on the last day of the month for a new customer Graham Engineering, Inc. but not invoiced to the customer or recorded into the accounting records until a few days into the next month. Create a new asset account like you did earlier in the chapter. f. Depreciation Expense of $1,200 ($850 and $350 for Buildings and Machinery & Equipment respectively) needed to be recorded for the month. Before recording this journal entry, edit the Depreciation expense account so that the new name is Depreciation Expense. Also change the account title for the Machinery & Equipment accumulated depreciation account from Depreciation to Accumulated Depreciation like you did earlier in the chapter. This also needs to be done for the Buildings accumulation depreciation account. Trial Balance As of January 31, 2020 DEBIT CREDIT 53,226.42 6,728.88 8,000.00 6,050.00 327.00 0.00 31,800.00 2,000.00 18,000.00 5,700.00 15,850.00 123.00 Checking Accounts Receivable (A/R) Inventory Asset Prepaid Expenses Supplies Asset Undeposited Funds Buildings Machinery & Equipment:Depreciation Machinery & Equipment:Original cost Investments Accounts Payable (A/P) AMEX California Department of Tax and Fee Administration Paya... Payroll Tax Payable Notes Payable Opening Balance Equity Owner's Equity Sales of Product Income Services Cost of Goods Sold Advertising Insurance Interest Expense Meals and Entertainment Payroll 992.01 1,874.87 40,800.00 23,000.00 50,075.00 12,800.00 450.00 9,150.00 1,300.00 300.00 300.00 123.00 6,959.58 TOTAL $147,964.88 $147,964.88
