Question

The adjusted trial balance of University Book Store as of November 30, 2019, after the firm’s first month of operations, appears below.

Appropriate adjustments have been made for the following items:

Supplies used during the month, $5,400.

Expired rent for the month, $6,600.

Depreciation expense for the month, $1,700.

UNIVERSITY BOOK STORE Adjusted Trial Balance November 30, 2019
Account Name		Debit			Credit
Cash	$	45,750
Accounts Receivable		7,224
Supplies		8,400
Prepaid Rent		39,600
Equipment		54,600
Accumulated Depreciation-Equipment				$	1,700
Accounts Payable					17,200
Ruby Darbandi, Capital					82,874
Ruby Darbandi, Drawing		7,200
Fees Income					91,860
Depreciation Expense-Equipment		1,700
Rent Expense		6,600
Salaries Expense		16,200
Supplies Expense		5,400
Utilities Expense		960
Totals	$	193,634		$	193,634

Required:

Record the adjusting entries in the Adjustments columns.

Complete the Trial Balance columns of the worksheet prior to making the adjusting entries.

Analyze:
What was the balance of Prepaid Rent prior to the adjusting entry for expired rent?

Complete this question by entering your answers in the tabs below.

Req 2 to 3

Analyze

Record the adjusting entries in the Adjustments columns.
Complete the Trial Balance columns of the worksheet prior to making the adjusting entries.

	THE UNIVERSITY BOOKSTORE Worksheet (Partial) Month Ended November 30, 2019 Account Name Trial Balance Adjustments Adjusted Trial Balance Debit Credit Debit Credit Debit Credit Cash $45,750 Accounts Receivable 7,224 Supplies 8,400 Prepaid Rent 39,600 Equipment 54,600 Accumulated Depreciation—Equipment 1,700 Accounts Payable 17,200 Ruby Darkson, Capital 82,874 Ruby Darkson, Drawing 7,200 Fees Income 91,860 Depreciation Expense—Equipment 1,700 Rent Expense 6,600 Salaries Expense 16,200 Supplies Expense 5,400 Utilities Expense 960 Totals $193,634 $193,634

What was the balance of Prepaid Rent prior to the adjusting entry for expired rent?

	Prepaid rent:

Answer 1

THE UNIVERSITY BOOKSTORE
Worksheet (Partial)
Month Ended November 30, 2019
Account Name	Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$ 45,750.00				$   45,750.00
Accounts Receivable	$    7,224.00				$     7,224.00
Supplies	$ 13,800.00			$ 5,400.00	$     8,400.00
Prepaid Rent	$ 46,200.00			$ 6,600.00	$   39,600.00
Equipment	$ 54,600.00				$   54,600.00
Accumulated Depreciation—Equipment		$                -		$ 1,700.00		$     1,700.00
Accounts Payable		$    17,200.00				$   17,200.00
Ruby Darkson, Capital		$    82,874.00				$   82,874.00
Ruby Darkson, Drawing	$    7,200.00				$     7,200.00
Fees Income		$    91,860.00				$   91,860.00
Depreciation Expense—Equipment			$    1,700.00		$     1,700.00
Rent Expense	$              -		$    6,600.00		$     6,600.00
Salaries Expense	$ 16,200.00				$   16,200.00
Supplies Expense	$              -		$    5,400.00		$     5,400.00
Utilities Expense	$       960.00				$        960.00
Totals	$ 191,934.00	$   191,934.00	$ 13,700.00	$ 13,700.00	$ 193,634.00	$ 193,634.00

Balance of Prepaid rent Prior to adjusting entry =$46,200

Adjusting entry reduces balance of prepaid rent. If Prepaid rent adjusted balance is $39600 and adjustment is for $6600 then it means Unadjusted balance was $39600+6600=$46200