Question 3

The unadjusted trial balance for Sunland Engineering at its year end, December 31, 2017, is as follows:

SUNLAND ENGINEERING

Trial Balance

December 31, 2017

Debit

Credit

Cash

$8,400

Accounts receivable

5,850

Supplies

4,750

Prepaid insurance

7,560

Notes receivable

12,300Equipment

27,400Accumulated depreciationequipment

$8,220

Accounts payable

4,600

H. Duguay, capital

39,440

H. Duguay, drawings

52,500

Service revenue

106,000

Salaries expense

39,500

$158,260

$158,260

1.

Revenue of $10,550 was earned but unrecorded and uncollected as at December 31, 2017.

2.

On June 1, the company purchased a one-year insurance policy.

3.

Depreciation on the equipment for 2017 is $2,740.

4.A count on December 31, 2017, showed $1,800 of supplies on hand.

5.The four-month, 4% note receivable was issued on October 1, 2017. Interest and principal are payable on the maturity date.

Make adjusting entries for the year ended December 31, 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

Dec. 31

(To accrue revenue earned but not billed or collected)Dec. 31

(To record insurance expired)Dec. 31

(To record depreciation)Dec. 31

(To record supplies used)Dec. 31

(To record accrued interest)

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

Accounts Receivable

Interest Receivable

Prepaid Insurance

Supplies

Accumulated Depreciation-Equipment

Service Revenue

Interest Revenue

Supplies Expense

Depreciation Expense

Insurance Expense

Make closing entries.(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

Dec. 31

(To close revenue accounts)Dec. 31

(To close expense accounts)Dec. 31

(To close profit to capital)Dec. 31

(To close drawings account)