The trial balance of Nina's Novelty, Inc. at September 30, 2015, and the data needed for the month-end adjustments follow:

a. Insurance coverage still remaining at September 30, $800.
b. Supplies used during the month, $900.
c. Depreciation for the month, $2,200.
d. Accrued utilities expense at September 30, $1,000. (Use Accounts Payable as the liability account needed.)
e. Accrued salaries at September 30, $800.
f. Service revenue still unearned at September 30, $1,600.
Requirements
1. Journalize the adjusting entries.
2. Open T-accounts for the accounts listed in the trial balance and insert their September 30 unadjusted balances. Post the adjusting entries to the T-accounts.
Reference the posted amounts by letters (a) through (f). Calculate the adjusted balance in each account.
3. Prepare the adjusted trial balance.
4. How will the company use the adjusted trial balance?

Transcribed Image Text:

Nina's Novelty, Inc. Trial Balance September 30, 2015 ACCOUNT DEBIT CREDIT $ 25,000 17,400 2,400 1,200 59,000 Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation, Equipment Accounts Payable Salaries Payable $ 50,000 2,000 Unearned Service Revenue 2,400 25,000 22,800 Common Shares Retained Earnings Dividends 9,700 Service Revenue 16,200 Salaries Expense Insurance Expense Depreciation Expense Utilities Expense Supplies Expense 3,700 Total $118,400 $118,400