The trial balance of the Printer Repair Company at December 31 contains the following account balances listed in alphabetical order to increase your skill in sorting amounts to the proper order. Assume each account balance follows the normal balance rules.
				**Normal Balance means how to increase an account.
Account	Balance Amount	Account Type	Normal Balance**
Accounts Payable		41,000
Accounts Receivable		92,000
Accumulated DepreciationBuildings		25,000
Accumulated DepreciationEquipment		9,000
Buildings		140,000
Owner Capital		69,800
Cash	60,000
Equipment		36,000
Prepaid Insurance		3,600
Salaries Expense		96,000
Service Revenue		290,000
Supplies		4,000
Utilities Expense		3,200
Required: Using the account balances above and the following additional information, prepare the adjusting journal entries for Printer Repair Company. Post the entries and prepare the Adjusted Trial Balance in the proper order.
Adjusting Journal Entries:
a) Supplies on hand at December 31 have a cost of $ 2,400.
Use this to show Supplies expense calculation:
Unadjusted Supplies (Asset)	4000
- Supplies on hand (or remaining)	2400
Supplies expense for adjusting entry	1600
Adjusting Entry:		Debit	Credit
Dec 31	Supplies expense		1,600
	supplies			1,600
b) The balance in the Prepaid Insurance account represents the cost of a two-year insurance policy covering the period from January 1 this year, through December 31 of next year. Record one years worth of insurance only.
Use this to show the Insurance expense calculation:
Insurance Policy Cost	3600
Divide by time period of policy	2	years
Insurance expense for adjusting entry	1800
Adjusting Entry:		Debit	Credit
Dec 31	Insurance expense		1,800
	prepaid insurance			1,800
c) The estimated lives of depreciable assets are buildings, 40 years, and equipment, 20 years. No salvage values are anticipated. The annual depreciation expense for the building is $3,500 and $1,800 for the equipment.
Depreciation adjusting entry -- do each asset separately (amounts given to you)
			Debit	Credit
Dec 31	Depreciation Expense-Buildings		3,500
	Acc
Dec 31
Post adjusting entries:	In the Balance Column, enter the amount from the chart above
Account: Supplies
Ref.	Explanation	Debit	Credit	Balance
Balance
a)	adjusting entry
Account: Prepaid Insurance
Ref.	Explanation	Debit	Credit	Balance
Balance
b)	adjusting entry
Account: Accumulated Depreciation - Buildings
Ref.	Explanation	Debit	Credit	Balance
Balance
c)	adjusting entry
Account: Accumulated Depreciation - Equipment
Ref.	Explanation	Debit	Credit	Balance
Balance
c)	adjusting entry
Account: Supplies Expense
Ref.	Explanation	Debit	Credit	Balance
Balance
a)	adjusting entry
Account: Insurance Expense
Ref.	Explanation	Debit	Credit	Balance
Balance
b)	adjusting entry
Account: Depreciation Expense - Buildings
Ref.	Explanation	Debit	Credit	Balance
Balance
c)	adjusting entry
Account: Depreciation Expense - Equipment
Ref.	Explanation	Debit	Credit	Balance
Balance
c)	adjusting entry
Prepare Adjusted Trial Balance (using order Assets, Liabilities, Equity, Revenue and Expense)
Hint: Use all accounts listed in the problem and remember to use the updated balances from your adjusting entries above. If the account was not used in the adjusting journal entries, use the balance given in the chart.
Printer Repair Company
Adjusted Trial Balance
December 31
	Debit	Credit
Cash	60,000		this has been done for you as an example
Accounts Receivable	92,000
Supplies		2,400
Prepaid Insurance	1,800
Equipment	36,000
Accum. Depreciation - Equipment	9000
Buildings	140,000
Accum. Depreciation - Buildings	25000
Accounts Payable		41,000
Owner Capital		69,800
Service Revenue		290,000
Salaries Expense	96,000
Utilities Expense	3,200
Supplies Expense	1,600
Insurance Expense	1,800
Depreciation Expense - Buildings	3,500
Depreciation Expense - Equipment	1,800
TOTALS	474,100	400,800	Formula entered to total columns for you