The unadjusted trial balance and adjustment data of Elias Real Estate Appraisal Company at June 30, 2012, follow:

Adjustment data at June 30, 2012:
a. Prepaid insurance expired, $300.
b. Accrued service revenue, $1,300.
c. Accrued salary expense, $900.
d. Depreciation for the year, $8,500.
e. Supplies used during the year, $600.
Requirements
1. Open T-accounts for Retained earnings and all the accounts that follow on the trial balance. Insert their unadjusted balances. Also open a T-account for Income summary, which has a zero balance.
2. Journalize the adjusting entries and post to the accounts that you opened. Show the balance of each revenue account and each expense account.
3. Journalize the closing entries and post to the accounts that you opened. Draw double underlines under each account balance that you close to zero.
4. Compute the ending balance of Retainedearnings.

Transcribed Image Text:

ELIAS REAL ESTATE APPRAISAL COMPANY Unadjusted Trial Balance June 30, 2012 Debit Credit Account Title Cash 4,900 Accounts receivable Supplies Prepaid insurance Building Accumulated depreciation 4,000 3,000 2,200 74,400 S 18,800 Land 13,600 Accounts payable Interest payable Salary payable 19,500 8,800 1,300 Common stock 11,000 Retained earnings 19,800 Dividends 27,900 Service revenue 97,900 Salary expense Depreciation expense 32,400 Insurance expense Utilities expense 4,200 4,000 Supplies expense 6,500 Total $ 177,100 S 177,100