Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Wheel Thing was started on March 1 of the current year to provide automotive wheel alignment and balancing at three locations in a metropolitan
The Wheel Thing was started on March 1 of the current year to provide automotive wheel alignment and balancing at three locations in a metropolitan area. On March 31, the unadjusted balances of the firm's accounts are as follows:
The Wheel Thing
Trial Balance
March 31, 2020
Debit Credit
Cash $ 7,200
Accounts Receivable 3,800
Prepaid Rent 1,200
Supplies on Hand 450
Equipment28,000
Accounts Payable $ 6,000
George Travis, Capital30,000
George Travis, Drawing 1,200
Service Revenue 13,400
Wages Expense 7,500 _______
$49,400 $49,400
The following information is also available:
(1) The balance in Prepaid Rent was the amount paid on March 1 to cover the first two months' rent.
(2) Supplies on hand on March 31 amounted to $250.
(3) Depreciation on equipment for March was estimated at $225.
(4) Unpaid wages for March were $450 at the end of the month.
(5) Utility services used during March were estimated at $120. A bill is expected early in April.
Required: In general journal form, make the adjusting entries needed at March 31, 2020 (one month worth of adjustment).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started