Question

In: Accounting

debit credit cash 6900 accounts receivable 4500 prepaid rent 6300 supplies 2250 equipment 18000 accumulated depreciation...

debit credit
cash 6900
accounts receivable 4500
prepaid rent 6300
supplies 2250
equipment 18000
accumulated depreciation 900
unearned revenue 1500
notes payable 10 000
contributed capital 8000
retained earnings, 1 april 12200
service revenue 11200
advertising expense 650
depreciation expense 900
interest expense 150
rent expense 2100

salaries expense

dividends

totals

1700

350

43800

43800

Additional Information:

i   Rent expires (is used up) at a rate of $700 per month.

ii   Monthly depreciation on equipment is $300.

iii   Interest on the 6 per cent promissory note is paid quarterly on
1 April, 1 July, 1 October and 1 January.

iv   Performed services for which payment was received in April– $800.

v   Received electricity bill to be paid next month – $500.

vi   Services to customers earned during June but unrecorded at 30 June, $2500

. vii   Supplies on hand totaled $1500 at 30 June. viii Owed employees for salaries for the last week of June to be
paid in July – $800

. ix   Prime Realty prepares adjusting entries each quarter adjustments were last made on 31 march

Required
a   Prepare all adjusting journal entries for the quarter ending 30 June.
b   Post journal entries to T-accounts using totals on the unadjusted trial balance as the opening balances

c   Prepare an adjusted trial balance as of 30 June

Solutions

Expert Solution

a. Account Title Debit Credit
i Rent Expense 2100
Prepaid rent 2100
$ 700*3 --rent for Apr-Jun qtr.
ii Depreciation expense 900
Accumulated depreciation 900
$ 300*3 mths.
iii Interest Expense 150
Interest Payable 150
Apr-Jun Qtr.
iv. Unearned Revenue 800
Services Revenue 800
v Utilities expense 500
Utilities payable 500
vi Accounts receivable 2500
Service revenue 2500
vii Supplies Expense 750
Supplies 750
(2250-1500)
viii Salaries expense 800
Salaries payable 800
8500 8500
LEDGER ACCOUNTS Net Ledger Balances
a. Account Title Debit Credit Debit Credit
vi Accounts receivable 2500 2500
ii Accumulated depreciation 900 900
ii Depreciation expense 900 900
iii Interest Expense 150 150
iii Interest Payable 150 150
i Prepaid rent 2100 2100
i Rent Expense 2100 2100
viii Salaries payable 800 800
viii Salaries expense 800 800
vi Service revenue 2500
iv. Services Revenue 800 3300
vii Supplies 750 750
vii Supplies Expense 750 750
iv. Unearned Revenue 800 800
v Utilities expense 500 500
v Utilities payable 500 500
8500 8500 8500 8500
TRIAL BALANCE Unadjusted Adjustments Adjusted T/B
As at 30 th June Debit Credit Debit Credit Debit Credit
Cash 6900 6900
Accounts receivable 4500 2500 7000
Prepaid rent 6300 -2100 4200
Supplies 2250 -750 1500
Equipment 18000 18000
Accumulated depreciation 900 900 1800
Unearned revenue 1500 -800 700
Salaries payable 800 800
Utilities payable 500 500
Interest Payable 150 150
Notes payable 10000 10000
Contributed capital 8000 8000
Retained earnings, 1 April 12200 12200
Service revenue 11200 3300 14500
Advertising expense 650 650
Depreciation expense 900 900 1800
Supplies Expense 750 750
Utilities expense 500 500
Interest expense 150 150 300
Rent expense 2100 2100 4200
Salaries expense 1700 800 2500
Dividends 350 350
Totals 43800 43800 4850 4850 48650 48650

ekkarill92 answered 2 years ago
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