Problem 3: Adjusting journal entries

Based on the unadjusted trial balance for K-SOFT and the adjusting information given below,

1) prepare the adjusting journal entries for K-SOFT.

2) prepare the adjusted trial balance for K-SOFT.

3) Prepare the required four financial statements K-SOFT unadjusted trial balance for the current year follows:

K-SOFT

Unadjusted Trial Balance

December 31

Debit Credit

Cash $ 4,200

Prepaid insurance 1,480

Supplies 990

Equipment 3,860

Accumulated depreciationequipment $ 770

Building 57,500

Accumulated depreciationbuilding 3,840

Land 55,000

Unearned revenue 1,600

Long-term notes payable 50,000

, Capital 49,860

Rent revenue 2,400

Fees revenue 23,400

Wages expense 3,200

Utilities expense 690

Property taxes expense 600

Interest expense 4,350

Totals $ 131,870 $ 131,870

Additional information:

a) A total of $1,240 of insurance had expired.

b) Unused supplies $210

c) Depreciation expense on equipment, $350.

d) Depreciation expense on the building, $2,220.

e) Accrued rent revenue of $200 was unrecorded

f) $800 of the Unearned Revenue account balance was earned by year-end.

g) A staff works a five-day workweek at $50 per day. The employee was paid last week but has worked four days this week for which she has not been paid.

h) Accrued tax $450 not yet been paid.

i) Note payable, $600, has accrued but is unrecorded and not yet been paid.