Question
Problem 2 Manar Company has the following unadjusted trial balance at 31 December 2020. Manar Company Unadjusted Trial Balance December 31, 2020 Accounts Debit Credit
Problem 2
Manar Company has the following unadjusted trial balance at 31 December 2020.
Manar Company | ||
Unadjusted Trial Balance | ||
December 31, 2020 | ||
Accounts | Debit | Credit |
Cash | 25,000 | |
Accounts Receivable | 12,000 | |
Supplies | 3,500 | |
Prepaid Rent | 6,000 | |
Prepaid Insurance | 1,200 | |
Accounts Payable | 5,700 | |
Unearned Revenue | 13,000 | |
Manar, Capital | 30,000 | |
Manar, Drawings | 5,000 | |
Service Revenue | 25,000 | |
Salaries Expense | 9,000 | |
Advertising Expense | 1,500 | |
Utilities Expense | 4,000 | |
Miscellaneous Expense | 6,500 | |
Total | 73,700 | 73,700 |
Additional information: |
1. Insurance expense for the year, OMR400 |
2. Supplies on hand at 31 December, OMR 1,200 |
3. Rent expense for the year, OMR 4,000 |
4. Salaries accrued but not yet paid on December 31, OMR 600 |
5. Service revenues earned but not yet recorded at 31 December 2017, OMR 5,000 |
6. Unearned revenues at December 31, is OMR 5,000. |
Required: |
A. Prepare the necessary adjusting entries on 31 December 2020. |
B. Determine the balance of the accounts affected by the adjusting entries and prepare the adjusted trial balance. |
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