Question

The unadjusted trial balance of

Lady

Ltd. at

October

31​,

2020​,

appears in the solution step below. The adjustment data at

October

31​,

2020​,

is provided.

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​(Click the icon to view the​ month-end adjustment​ data.)Requirements

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Requirement 1. Using the​ worksheet, prepare the adjusted trial balance of

Lady

Ltd. at

October

31​,

2020.

The unadjusted balances have been entered for you. Key each adjusting entry by letter.

Calculate the adjusted balance of each​ account, and then total the debit and credit columns in the adjusted trial balance. ​(Leave unused cells blank. Round your answers to the nearest whole​ number.)

Lady Ltd.

Trial Balance Worksheet

October 31, 2020

		Trial Balance		Adjustments
	Account	Debit	Credit		Debit		Credit
	Cash	8,400
	Accounts receivable	10,000
	Accrued service revenue
	Prepaid rent	2,400
	Supplies	2,700
	Furniture	37,800
	Accumulated depreciation		3,500
	Accounts payable		11,000
	Salary payable
	Share capital		23,000
	Retained earnings		12,300
	Dividends	4,400
	Service revenue		20,000
	Salary expense	3,000
	Rent expense
	Utilities expense	1,100
	Depreciation expense
	Supplies expense
	Total	69,800	69,800

Choose from any list or enter any number in the input fields and then click Check Answer.

Adjustment data at

October

31​,

2020.

a.	Accrued service revenue at October 31​, $1,600.
b.	Prepaid rent expired during the month. The unadjusted prepaid balance of ​$2,400 relates to the period October through December.
c.	Supplies used during October​, $2,700.
d.	Depreciation on furniture for the month. The estimated useful life of the furniture is three years.
e.	Accrued salary expense at October 31 for​ Monday, Tuesday, and Wednesday. The​ five-day weekly payroll of $4,800 will be paid on​ Friday, November 2.

Answer 1

Account Name	Trial Balance	Adjustments	Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$ 8,400				$ 8,400
Accounts Receivable	$ 10,000				$ 10,000
Accrued service revenue			$ 1,600		$ 1,600
Prepaid rent	$ 2,400			$ 2,400	$ 0
Supplies	$ 2,700			$ 300	$ 2,400
Furniture	$ 37,800				$ 37,800
Accumulated Depreciation		$ 3,500		$ 12,600		$ 16,100
Accounts Payable		$ 11,000				$ 11,000
Salary payable				$ 2,880		$ 2,880
Share Capital		$ 23,000				$ 23,000
Retained earnings		$ 12,300				$ 12,300
Dividends	$ 4,400				$ 4,400
Service revenue		$ 20,000		$ 1,600		$ 21,600
Salary expense [4800 ÷ 5 x 3]	$ 3,000		$ 2,880		$ 5,880
Rent expense			$ 2,400		$ 2,400
Utilites expense	$ 1,100				$ 1,100
Depreciation expense [37,800 x 1/3]			$ 12,600		$ 12,600
Supplies expense [2700 - 2400]			$ 300		$ 300
Total	$ 69,800	$ 69,800	$ 19,780	$ 19,780	$ 86,880	$ 86,880