Question 3

The unadjusted trial balance for Carla Vista at its year end, April 30, 2017, is as follows:

CARLA VISTA

Trial Balance

April 30, 2017

Debit

Credit

Cash

$11,000

Accounts receivable

9,000

Prepaid rent

4,700

Equipment

23,040

Accumulated depreciationequipment

$5,760Accounts payable

5,100Notes payable

12,000

Unearned revenue

1,500T. Muzyka, capital

25,750

T. Muzyka, drawings

4,000Service revenue

15,000

Salaries expense

9,900

Interest expense770Depreciation expense2,700$65,110

$65,110

Additional information:

1.

$510 of the unearned revenue has been earned by April 30, 2017.

2.The equipment has an estimated useful life of eight years.

3.Interest on the note payable is due on the first day of each month for the previous month's interest. The note payable has a 6% annual interest rate.

Carla Vista makes adjusting entries monthly. Make adjusting entries for the month ended April 30, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Apr.30

(To record revenue for services provided)Apr.30

(To record monthly depreciation)Apr.30

(To accrue interest on note payable)

Post the adjusting entries. (Post entries in the order of journal entries presented in the previous part.)

Unearned Revenue

Accumulated Depreciation-Equipment

Service Revenue

Interest Payable

Depreciation Expense

Interest Expense

Make closing entries for the year ended. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Apr.30

(To close revenue account)Apr.30

(To close expense accounts)Apr.30

(To close profit to capital)Apr.30

(To close drawings account)