Question

The Signage Company specializes in the maintenance and repair of signs, such as billboards. On March 31, 2016 the accountant for The Signage Company prepared an unadjusted trial balance and an adjusted trial balance.

The Signage Company

UNADJUSTED TRIAL BALANCE

March 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	4,750.00
2	Accounts Receivable	17,400.00
3	Supplies	6,200.00
4	Prepaid Insurance	9,000.00
5	Land	100,000.00
6	Buildings	170,000.00
7	Accumulated Depreciation-Buildings		51,500.00
8	Trucks	75,000.00
9	Accumulated Depreciation-Trucks		12,000.00
10	Accounts Payable		6,920.00
11	Salaries Payable
12	Unearned Service Fees		10,500.00
13	Al Bosch, Capital		256,400.00
14	Al Bosch, Drawing	7,500.00
15	Service Fees Earned		162,680.00
16	Salaries Expense	80,000.00
17	Depreciation Expense-Trucks
18	Rent Expense	11,900.00
19	Supplies Expense
20	Utilities Expense	6,200.00
21	Depreciation Expense-Buildings
22	Taxes Expense	2,900.00
23	Insurance Expense
24	Miscellaneous Expense	9,150.00
25	Totals	500,000.00	500,000.00

Compare the unadjusted trial balance to the adjusted trial balance. Journalize the seven entries that adjusted the accounts at March 31. None of the accounts were affected by more than one adjusting entry. Refer to the Chart of Accounts for exact wording of account titles.

Adjusted Trial Balance

The Signage Company

ADJUSTED TRIAL BALANCE

March 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	4,750.00
2	Accounts Receivable	17,400.00
3	Supplies	2,175.00
4	Prepaid Insurance	1,150.00
5	Land	100,000.00
6	Buildings	170,000.00
7	Accumulated Depreciation-Buildings		61,000.00
8	Trucks	75,000.00
9	Accumulated Depreciation-Trucks		17,000.00
10	Accounts Payable		8,750.00
11	Salaries Payable		1,400.00
12	Unearned Service Fees		3,850.00
13	Al Bosch, Capital		256,400.00
14	Al Bosch, Drawing	7,500.00
15	Service Fees Earned		169,330.00
16	Salaries Expense	81,400.00
17	Depreciation Expense-Trucks	5,000.00
18	Rent Expense	11,900.00
19	Supplies Expense	4,025.00
20	Utilities Expense	8,030.00
21	Depreciation Expense-Buildings	9,500.00
22	Taxes Expense	2,900.00
23	Insurance Expense	7,850.00
24	Miscellaneous Expense	9,150.00
25	Totals	517,730.00	517,730.00

Chart of Accounts

CHART OF ACCOUNTS
The Signage Company
General Ledger
ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 16 Land 17 Buildings 18 Accumulated Depreciation-Buildings 19 Trucks 20 Accumulated Depreciation-Trucks LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Service Fees EQUITY 31 Al Bosch, Capital 32 Al Bosch, Drawing	REVENUE 41 Service Fees Earned EXPENSES 51 Salaries Expense 52 Depreciation Expense-Trucks 53 Rent Expense 54 Supplies Expense 55 Utilities Expense 56 Depreciation Expense-Buildings 57 Taxes Expense 58 Insurance Expense 59 Miscellaneous Expense

Answer 1

Answer: Adjustment entries on March 31, 2016

Date	Accounts Titles and Explanations	Debit	Credit
Mar. 31	Supplies Expense	4025
	Supplies (6200 - 2175)		4025
	(To record supplies used )
Mar. 31	Insurance Expense	7850
	Prepaid Insurance (9000 - 1150)		7850
	(To record insurance expired)
Mar. 31	Depreciation Expense	9500
	Accumulated Deprecition - Building (61000 - 51500)		9500
	(To record deprecition on building)
Mar. 31	Depreciation Expense	5000
	Accumulated Depreciation - Truck (17000 - 12000)		5000
	(To record depreciation on trucks)
Mar. 31	Utilities Expense	1830
	Accounts Payable (8750 - 6920)		1830
	(To record accrued utilities expense)
Mar. 31	Salary Expense	1400
	Salaries Payable		1400
	(To record accrued salary expense)
Mar. 31	Unearned Service Revenue (10,500 - 3850)	6650
	Service Fees Earned		6650
	(To record service fees earned)

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