In: Accounting
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
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 |