Question 4

Presented below is the Trial Balance and the Adjusted Trial Balance side by side for Walnut Creek Building Maintenance Company on December 31, 2020.

Walnut Creek Building Maintenance Company

Trial Balance

December 31,2020

_____________________________________________________________________________

Before Adjustment After Adjustment

Dr. Cr. Dr. Cr.

Cash $ 3,000 $ 3,000

Accounts Receivable 2,800 3,700

Prepaid Rent 2,100 1,500

Supplies 1,200 700

Equipment 18,000 18,000

Accumulated Depreciation

Equipment $ 1,300 $ 1,500

Accounts Payable 2,700 3,000

Notes Payable 10,000 10,000

Interest Payable 120

Salaries and Wages Payable 800

Unearned Service Revenue 4,460 4,060

Common Stock 8,200 8,200

Dividends 3,200 3,200

Service Revenue 8,000 9,300

Salaries and Wages Expense 2,060 2,860

Utilities Expense 1,800 2,100

Rent Expense 500 1,100

Supplies Expense 500

Depreciation Expense 200

Interest Expense 120

Totals $34,660 $34,660 $36,980 $36,980

Instructions:

Prepare in journal entry form, the adjusting entries that account for the changes between the initial balances in the Trial Balance and the final balances in the Adjusted Trial Balance.

Here is a jump start on the first adjusting entry: Debit Credit

Accounts Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900

Service Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900

Notice: the above adjusting entry accounts for the increase in the Accounts Receivable from the Trial Balance to the Adjusted Trial Balance, however, the above entry does Not completely account for the increase in Service Revenue, therefore another adjusting entry will be needed.

Again: be sure to prepare your adjusting journal entries in good form with proper format.