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Willis Consulting follows the approach of recording prepaid expenses as expenses and unearned revenues as revenues. Willis's unadjusted trial balance for the year ended March
Willis Consulting follows the approach of recording prepaid expenses as expenses and unearned revenues as revenues. Willis's unadjusted trial balance for the year ended March 31, 2020, follows.
WILLLS CONSULTING Trial Balances March 31, 2020 | |||||||||||||
Unadjusted | Adjusted | ||||||||||||
Trial Balance | Adjustments | Trial Balance | |||||||||||
Account | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | |||||||
Cash | $ | 32,200 | |||||||||||
Accounts receivable | 63,200 | ||||||||||||
Prepaid rent | 0 | ||||||||||||
Prepaid insurance | 0 | ||||||||||||
Accounts payable | $ | 16,200 | |||||||||||
Unearned consulting revenue | 0 | ||||||||||||
Bruce Wills, capital | 38,600 | ||||||||||||
Consulting revenue | 83,600 | ||||||||||||
Rent expense | 40,390 | ||||||||||||
Insurance expense | 2,610 | ||||||||||||
Totals | $ | 138,400 | $ | 138,400 | |||||||||
Additional information:
- A review of the Consulting Revenue account showed that $6,600 of the balance has not yet been earned.
- The balance in the Rent Expense account was paid on January 15, 2020, and represents seven months of rent beginning February 1, 2020.
- It was determined that $2,000 of the balance in the Insurance Expense account was used by March 31, 2020.
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