Question

Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepared on the following end-of-period spreadsheet for the year ended October 31, 2016:

Alert Security Services Co.

End-of-Period Spreadsheet

For the Year Ended October 31, 2016

1		Unadjusted	Unadjusted			Adjusted	Adjusted
2		Trial Balance	Trial Balance	Adjustments	Adjustments	Trial Balance	Trial Balance
3		Debit	Credit	Debit	Credit	Debit	Credit
4	Cash	12.00
5	Accounts Receivable	90.00
6	Supplies	8.00
7	Prepaid Insurance	12.00
8	Land	190.00
9	Equipment	50.00
10	Accumulated Depreciation-Equipment		4.00
11	Accounts Payable		36.00
12	Wages Payable		0.00
13	Brenda Schultz, Capital		260.00
14	Brenda Schultz, Drawing	8.00
15	Fees Earned		200.00
16	Wages Expense	110.00
17	Rent Expense	12.00
18	Insurance Expense	0.00
19	Utilities Expense	6.00
20	Supplies Expense	0.00
21	Depreciation Expense	0.00
22	Miscellaneous Expense	2.00
23	Totals	$500.00	$500.00

The data for year-end adjustments are as follows:

•	Fees earned, but not yet billed, $13.
•	Supplies on hand, $4.
•	Insurance premiums expired, $10.
•	Depreciation expense, $3.
•	Wages accrued, but not paid, $1.

Prepare the adjusting entries for Alert Security Services Co. Refer to the Chart of Accounts for correct wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS
Alert Security Services Co.
General Ledger
ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 15 Land 16 Equipment 17 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Wages Payable EQUITY 31 Brenda Schultz, Capital 32 Brenda Schultz, Drawing	REVENUE 41 Fees Earned EXPENSES 51 Wages Expense 52 Rent Expense 53 Insurance Expense 54 Utilities Expense 55 Supplies Expense 56 Depreciation Expense 57 Miscellaneous Expense

Journal

Prepare the adjusting entries for Alert Security Services Co. Refer to the Chart of Accounts for correct wording of account titles.

PAGE 10

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
2
3
4
5
6
7
8
9
10
11

Answer 1

• Requirement 1

1		Unadjusted				Adjusted
2		Trial Balance		Adjustments		Trial Balance
3		Debit	Credit	Debit	Credit	Debit	Credit
4	Cash	$12				$12
5	Accounts Receivable	$90		$13		$103
6	Supplies	$8			$4	$4
7	Prepaid Insurance	$12			$10	$2
8	Land	$190				$190
9	Equipment	$50				$50
10	Accumulated Depreciation-Equipment		$4		$3		$7
11	Accounts Payable		$36				$36
12	Wages Payable		$0		$1		$1
13	Brenda Schultz, Capital		$260				$260
14	Brenda Schultz, Drawing	$8				$8
15	Fees Earned		$200		$13		$213
16	Wages Expense	$110		$1		$111
17	Rent Expense	$12				$12
18	Insurance Expense	$0		$10		$10
19	Utilities Expense	$6				$6
20	Supplies Expense	$0		$4		$4
21	Depreciation Expense	$0		$3		$3
22	Miscellaneous Expense	$2				$2
23	Totals	$500	$500	$31	$31	$517	$517

• Requirement 2

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2	31-Oct-16	Accounts Receivable	12	$13
3		Fees Earned	41		$13
4	31-Oct-16	Supplies Expense	55	$4
5		Supplies	13		$4
6	31-Oct-16	Insurance Expense	53	$10
7		Prepaid Insurance	14		$10
8	31-Oct-16	Depreciation Expense	56	$3
9		Accumulated Depreciation-Equipment	17		$3
10	31-Oct-16	Wages Expense	51	$1
11		Wages Payable	22		$1