Question

you have saved up some money to start a dog grooming business! Fluffy Grooming begins operations in December 2018. Record all of the December transactions, produce financial statements, and close the accounts.

(A) Record rent expense for December.

(B) Accrue $250 earned, but not yet recorded.

(C) Accrue $75 wages expense for work performed Dec 29-31.

(D) Only $300 office supplies are still on hand. Record office supplies used.

(E) Record $40 depreciation on grooming equipment.

(F) $100 of the unearned revenue has now been earned.

Answer 1

	Account Titles	Debit	Credit
A	Rent Expense
	Rent Payable/Prepaid Rent
B	Accounts Receivable	$            250
	Service Revenue		$            250
C	Wages Expense	$              75
	Wages Payable		$              75
D	Office Supplies Expense
	Office Supplies
E	Depreciation Expense	$              40
	Accumulated Depreciation		$              40
F	Unearned Revenue	$            100
	Service Revenue		$            100

Unadjusted Trial Balance was not given, so rent expense and supplies expense could not be calculated.
Information about rent expense was also not complete, so it was not clear whether there was prepaid rent or not.

Supplies Expense = Supplies (As per trial) - $300