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, $2,900.

Expired rent for the month, $3,500.

Depreciation expense for the month, $950.

UNIVERSITY BOOK STORE Adjusted Trial Balance November 30, 2019
Account Name		Debit			Credit
Cash	$	23,075
Accounts Receivable		3,812
Supplies		4,600
Prepaid Rent		21,000
Equipment		27,500
Accumulated Depreciation-Equipment				$	950
Accounts Payable					9,000
Ruby Darbandi, Capital					41,837
Ruby Darbandi, Drawing		4,000
Fees Income					48,550
Depreciation Expense-Equipment		950
Rent Expense		3,500
Salaries Expense		8,500
Supplies Expense		2,900
Utilities Expense		500
Totals	$	100,337		$	100,337

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 $23,075 Accounts Receivable 3,812 Supplies 4,600 Prepaid Rent 21,000 Equipment 27,500 Accumulated Depreciation—Equipment 950 Accounts Payable 9,000 Ruby Darkson, Capital 41,837 Ruby Darkson, Drawing 4,000 Fees Income 48,550 Depreciation Expense—Equipment 950 Rent Expense 3,500 Salaries Expense 8,500 Supplies Expense 2,900 Utilities Expense 500 Totals $100,337 $100,33

Answer 1

Solution:

The University book Store
Adjusted Trial Balance
Month ended Nov 30, 2019
Account Name	Trial balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$23,075.00				$23,075.00
Accounts Receivable	$3,812.00				$3,812.00
Supplies	$7,500.00			$2,900.00	$4,600.00
Prepaid Rent	$24,500.00			$3,500.00	$21,000.00
Equipment	$27,500.00				$27,500.00
Accumulated Depreciation—Equipment		$0.00		$950.00		$950.00
Accounts Payable		$9,000.00				$9,000.00
Ruby Darkson, Capital		$41,837.00				$41,837.00
Ruby Darkson, Drawing	$4,000.00				$4,000.00
Fees Income		$48,550.00				$48,550.00
Depreciation Expense—Equipment	$0.00		$950.00		$950.00
Rent Expense	$0.00		$3,500.00		$3,500.00
Salaries Expense	$8,500.00				$8,500.00
Supplies Expense	$0.00		$2,900.00		$2,900.00
Utilities Expense	$500.00				$500.00
Totals	$99,387.00	$99,387.00	$7,350.00	$7,350.00	$100,337.00	$100,337.00

Balance of Prepaid Rent prior to the adjusting entry for expired rent = $24,500