Requirement 1. The T-accounts listed on the unadjusted trial balance and the Income Summary account have been opened for you and the unadjusted balances have been inserted. Journalize and post the adjusting entries at

January 31

Compute the ending balances in the T-accounts, and denote as

Bal.

Begin by journalizing the adjusting entries.

Grafton TechGrafton Tech

groups all operating expenses under two accounts, Selling Expense and Administrative Expense. Select the applicable account name with the appropriate expense description in parentheses. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

a. Office Supplies consumed during the month,

$1,900.

Half is selling expense, and the other half is administrative expense.

Date			Accounts and Explanation	Debit	Credit
Jan. 31
Adj (a.)

Grafton Tech
Unadjusted Trial Balance
31-Jan-16
	Balance
Account	Debit	Credit
Cash	$20,440
Accounts Receivable	18,930
Merchandise Inventory	64,000
Office Supplies	2,930
Building	190,000
Accumulated DepreciationBuilding		$42,000
Furniture	51,000
Accumulated DepreciationFurniture		5,600
Accounts Payable		21,300
Salaries Payable		0
Unearned Revenue		6,350
Notes Payable, long-term		75,000
Common Stock		80,000
Retained Earnings		92,040
Dividends	8,200
Sales Revenue		168,130
Sales Discounts	7,230
Sales Returns and Allowances	7,460
Cost of Goods Sold	88,250
Selling Expense	20,390
Administrative Expense	11,590
Total	$490,420	$490,420

a.	Office Supplies consumed during the month,$1,900. Half is selling expense, and the other half is administrative expense.
b.	Depreciation for the month: building, $4,800; furniture, $3,000. One-fourth of depreciation is selling expense, and three-fourths is administrative expense.
c.	Unearned sales revenue earned during January, $3,470.
d.	Accrued salaries, an administrative expense, $1,805.
e.	Merchandise Inventory on hand,$61,850. GraftonGrafton uses the perpetual inventory system.