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The trial balance of Johnson Travel at December 31, 2005 follows; along with the data for the month end adjustments Johnson Travel Trial Balance December
The trial balance of Johnson Travel at December 31, 2005 follows; along with the data for the month end adjustments
Johnson Travel
Trial Balance
December 31, 2005
Cash 1300
A/R 6600
Supplies 2300
Prepaid rent 1600
Furniture 3600
Accumulated depreciation (furniture) 4800
A/P 4500
Unearned service revenue 600
Capital 26000
Withdrawals 29000
Service revenue 106000
Depreciation expense 2300
Salary expense 39900
Rent expense 20000
Supplies expense 2900
Total 141900 141900
a) Depreciation on furniture for the month. The estimated useful life of the furniture is 3 years.
b) On December 1, the business moved into a new office and paid the first 2 months rent as advance. Prepaid rent expired during the month.
c) Service Revenue of $ 500 were earned during the month from the services performed for clients who had paid in advance.
d) The salary expense is $ 205 per day and the business pays employees every Friday(weekly payroll is from Monday to Friday). This year December 31 falls on a Monday.
e) Supplies on hand at Dec 31 $ 1600
1) What adjusting entry will Jonson make on this transaction ?
a) Depreciation on furniture for the month. The estimated useful life of the furniture is 3 years
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