Transactions to be recorded:

1 Cash Dividends of $1,000 were declared and paid on October 31st.

2 There were 800 shares of stock issued and recorded on November 1, 2016. Marx Consulting issued another 400 shares of stock with a par value of $0.25 at fiscal year end that needs recording. They received $800 in cash for the stock. Adjusting Entries to be recorded:

3 A count of Office supplies reveals $500 was on hand on October 31.

4 The $2,400 one-year insurance policy was purchased on August 1, 2017.

5 Equipment was purchased on November 1, 2016 for $25,000. The equipment has a useful life of 5 years with no residual value. The company uses straight-line depreciation.

6 The $3,000 Note payable was issued on July 1, 2017 and accrues interest at a 4% annual rate. Simple interest method. The note plus interest is expected to be repaid in January of 2018.

7 On October 1, 2017, the company entered into a 4-month contract to provide consulting services for a local business. The business paid $800 in advance for the service. One month of services has now been provided.

8 The company had an employee who had earned, unrecorded unpaid wages of $200 on October 31.

9 As of October 31, the company had completed, but not yet billed $550 worth of work.

Required:

1 Post the adjusting journal entries required to the Adjustments column. Reference your entries. The Adjusted TB column will calculate for you.

2 Record the adjusting entries on the GJ below. Explain each transaction. Make sure you Debits equal your Credits. Link all account values and account titles from the TB.

		Trial Balance
		October 31, 2017
			Unadjusted TB			Adjustments				Adjusted TB
			DR	CR		DR	CR			DR	CR
		Cash	$3,100							$3,100
		Accounts receivable, net	3,000							3,000
		Office supplies	1,500							1,500
		Prepaid insurance	2,400							2,400
		Prepaid rent	6,000							6,000
		Equipment	25,000							25,000
		Accumulated depreciation equipment									$-
		Accounts payable		$800							800
		Wages payable		900							900
		Interest payable									-
		Unearned consulting revenue		800							800
		Note payable		3,000							3,000
		Common shares		200							200
		Additional paid-in capital		1,200							1,200
		Retained earnings		-							-
		Dividends	-							-
		Consulting revenue, net		70,000							70,000
		Cost of services sold	4,100							4,100
		Wages expense	11,000							11,000
		Depreciation expense	-							-
		Office supplies expense	500							500
		Maintenance expense	300							300
		Insurance expense	-							-
		Rent expense	15,000							15,000
		Interest expense	-							-
		Income tax expense	5,000							5,000
		Totals	$76,900	$76,900						$76,900	$76,900
						Your Debits should equal				Your Debits should equal
						your Credits at $9,390				your Credits at $83,490