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

Adjustment data at June 30, 2012:
a. Prepaid insurance expired, $400.
b. Accrued service revenue, $1,100.
c. Accrued salary expense, $700.
d. Depreciation for the year, $8,500.
e. Supplies used during the year, $100.

Requirements
1. Open T-accounts for Smith, capital 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 Smith,capital.

Transcribed Image Text:

SMITH REAL ESTATE APPRAISAL COMPANY Unadjusted Trial Balance June 30, 2012 Debit Credit Account Title Cash Accounts receivable Supplies Prepaid insurance Building Accumulated depreciation Land Accounts payable Interest payable Salary payable Smith, capital Smith, drawing Service revenuC Salary expense Depreciation expense Insurance expense Utilities expense Supplies expense Total S 4,600 3,500 3,000 2,100 74,700 $ 18,600 14,000 18,900 8,000 600 33,000 27,000 97.500 32.100 5,100 3,600 6,900 S 176,600 $ 176,600