The Adjusting Trial Balance Worksheet for Smith & Smith Company at June $30,2016$ Smith and Smith Co$.$

General Journal

Adjustment Letter

Adjustment Entry Description

Debit

Credit

Prepare the adjusting and correcting entries for June in the General Journal provided.

Post the adjusting and correcting entries into the Adjusting Trial Balance worksheet and complete the Adjusted trial balance.

Additional information for June not yet recorded.

a$.$ Unbilled and uncollected work to June $30$ totals $$45,000.$

b$.$ An analysis of prepaid advertising shows that $$500$ of the balance was consumed.

c$.$ A shop supplies count on June $30$ shows that $$1,200$ are on hand.

d$.$ Equipment has an estimated useful life of ten years and an estimated residual value of $$500.$

e$.$ The records show that fifty percent of the work, for a $$10,000$ fee received in advance from a customer and recorded last month, is now completed.

f$.$ Salaries of $$5,800$ for employees for work done to the end of June has not been paid.

g$.$ Utilities invoice for services to June $22$ totals $$3,500.$

h$.$ Accrued revenues of $$7,800$ previously recorded to accounts receivable were collected.

i$.$ A building was purchased at the end of May. Its estimated useful life is fifty years and has an estimated residual value of $$10,000.$

j$.$ Rent expense of $$5,000$ cash for July has been paid and recorded directly to rent expense.

k$.$ Interest for the $6\%$ note payable has not yet been recorded for June.

l$.$ Income taxes of $$3,000$ is owing but not yet paid.

m$.$ Unrecorded and uncollected service revenue of $$9,000$ has been earned.

n$.$ A two$-$year, $$1,800$ insurance policy was purchased on June$1$ and recorded to prepaid insurance expense.

o$.$ The prior balance in the unadjusted prepaid insurance account

$($Excluding the insurance in item above$),$ shows that $$300$ of that balance is not yet used.$)$