Question

The March 31, 2017, unadjusted trial balance for Silva Rentals after its first year of operations is shown below: Silva Rentals Unadjusted Trial Balance March 31, 2017 Unadjusted Trial Balance No. Account Dr. Cr. 101 Cash $ 6,700 110 Rent receivable 30,700 124 Office supplies 2,100 141 Notes receivable, due 2017 44,500 161 Furniture 15,700 173 Building 213,000 183 Land 39,500 191 Patent 9,300 201 Accounts payable $ 13,450 252 Long-term note payable 172,000 301 Silva, Capital 85,000 302 Silva, withdrawals 90,500 406 Rent revenue 325,800 620 Office salaries expense 50,500 633 Interest expense 4,950 655 Advertising expense 14,300 673 Janitorial expense 40,700 690 Utilities expense 33,800 Totals $ 596,250 $ 596,250 Additional information: a. It was determined that the balance in the Rent Receivable account at March 31 should be $35,400. b. A count of the office supplies showed $1,710 of the balance had been used. c. Annual depreciation on the building is $24,700 and $3,200 on the furniture. d. The two part-time office staff members each get paid $1,450 bi-weekly (Every two weeks). The last bi-weekly (Every two weeks) pay period ended Friday, March 21. At March 31, six days’ salary had accrued. e. A review of the balance in Advertising Expense showed that $2,250 was for advertisements to appear in the April issue of Canadian Business magazine. f. Accrued utilities at March 31 totalled $2,470. g. March interest of $410 on the long-term note payable is unrecorded and unpaid as of March 31. Required: 1. - 3. Use the above information to complete the work sheet.

Answer 1

	Date	Account Heading		Debit	Credit
a	31-Mar	Rent revenue		$4,700
		Rent Receivable			$4,700
b	31-Mar	Supplies expense		$1,710
		office Supplies			$1,710
c	31-Mar	Depreciation expense-Furniture		$3,200
		Depreciation expense-Building		$24,700
		Accumulated Depreciation- Furniture			$3,200
		Accumulated Depreciation- Building			$24,700
d	31-Mar	Office Salaries expense		$1,740
		Salaries Payable			$1,740
e	31-Mar	Prepaid Adevertising Expense		$2,250
		Advertising expense			$2,250
f	31-Mar	Utilities Expense		$2,470
		Accrued Utility			$2,470
g	31-Mar	Interest Expense		$410
		Interest Payable			$410
				a	b	c	d	e	f	g	Total
	101	Cash	$6,700								$6,700
	110	Rent Receivable	$30,700	$4,700							$35,400
		Prepaid Advertising						$2,250			$2,250
	124	office Supplies	$2,100		($1,710)						$390
	141	Notes Receivables, due 2017	$44,500								$44,500
	161	Furniture	$15,700								$15,700
	173	Building	$213,000								$213,000
	183	Land	$39,500								$39,500
	191	Patent	$9,300								$9,300
	201	Accounts Payable	($13,450)								($13,450)
		Accumulated Depreciation- Furniture				($3,200)					($3,200)
		Accumulated Depreciation- Building				($24,700)					($24,700)
		Salaries payable					($1,740)				($1,740)
		Accrued Utility							($2,470)		($2,470)
		Interest Payable								($410)	($410)
	252	Long-term note payable	($172,000)								($172,000)
	301	Silva, Capital	($85,000)								($85,000)
	302	Silva, Withdrawals	$90,500								$90,500
	406	Rent revenue	($325,800)	($4,700)							($330,500)
	620	Office Salaries expense	$50,500				$1,740				$52,240
	633	Interest expense	$4,950							$410	$5,360
	655	Advertising expense	$14,300					($2,250)			$12,050
	673	Janitorial expense	$40,700								$40,700
	690	Utilities expense	$33,800						$2,470		$36,270
		Supplies Expense			$1,710						$1,710
		Depreciation expense-Furniture				$3,200					$3,200
		Depreciation expense-Building				$24,700					$24,700
		Total	$0	$0	$0	$0	$0	$0	$0	$0	$0
		Silva Rentals
		Adjusted Trial Blance
		March 31,2017
		Cash	$6,700
		Rent Receivable	$35,400
		Prepaid Advertising	$2,250
		office Supplies	$390
		Notes Receivables, due 2017	$44,500
		Furniture	$15,700
		Building	$213,000
		Land	$39,500
		Patent	$9,300
		Accounts Payable		$13,450
		Accumulated Depreciation- Furniture		$3,200
		Accumulated Depreciation- Building		$24,700
		Salaries payable		$1,740
		Accrued Utility		$2,470
		Interest Payable		$410
		Long-term note payable		$172,000
		Silva, Capital		$85,000
		Silva, Withdrawals	$90,500
		Rent revenue		$330,500
		Office Salaries expense	$52,240
		Interest expense	$5,360
		Advertising expense	$12,050
		Janitorial expense	$40,700
		Utilities expense	$36,270
		Supplies Expense	$1,710
		Depreciation expense-Furniture	$3,200
		Depreciation expense-Building	$24,700
		Total	$633,470	$633,470