Question

Elite HouseSitter, a HouseKeeping service, started the preparation of its adjusted trial balance as follows:

Elite HouseSitter

Preparation of adjusted trial balance

as at 30 June 2020

During the 12 months ended 30 June 2015, Elite HouseSitter:

1. used supplies of $1800
2. used up prepaid insurance of $620
3. used up $460 of the equipment through depreciation
4. accrued salary expense of $310 that Elite HouseSitter hasn’t paid yet
5. earned $360 of the unearned service revenue

Required:

1. Calculate and enter the adjustments amount directly in the Adjustments Columns. (3m)
2. Calculate and enter the balance amount directly in the Adjusted trial balance Column. (2m)
3. Prepare each adjusting journal entry for the amounts calculated above in Requirement 1. Date the entries and include explanations.   (5m)  
4. NOTE: Please use the format of following tables.

5. ELITE HOUSESITTER
   Preparation of adjusted trial balance
   as at 30 June 2020
   Account	Trial balance $		Adjustments $		Adjusted trial balance $
   	Debit	Credit	Debit	Credit	Debit	Credit
   Cash	700.00
   Supplies	3 000.00
   Prepaid insurance	800.00
   Equipment	29 000.00
   Accumulated depreciation		7 000.00
   Accounts payable		2 800.00
   Salary payable
   Unearned service revenue		500.00
   Molly, capital		7 200.00
   Molly, drawings	3 000.00
   Service revenue		25 000.00
   Salary expense	6 000.00
   Supplies expense
   Depreciation expense
   Insurance expense
   Totals	42 500.00	42 500.00

   Journal
   DATE	ACCOUNTS AND EXPLANATIONS	POST. REF.	DEBIT	CREDIT

Answer 1

ELITE HOUSESITTER
Preparation of adjusted trial balance as at 30 June 2020
Account	Trial balance	Adjustments	Adjusted trial balance
	$	$	$	$	$	$
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	700.00				700.00	-
Supplies	3,000.00			1,800.00	1,200.00
Prepaid insurance	800.00			620.00	180.00
Equipment	29,000.00				29,000.00	-
Accumulated depreciation		7,000.00		460.00	-	7,460.00
Accounts payable		2,800.00			-	2,800.00
Salary payable		500.00		310.00	-	810.00
Unearned service revenue			360.00		360.00	-
Molly, capital		7,200.00			-	7,200.00
Molly, drawings	3,000.00				3,000.00	-
Service revenue		25,000.00		360.00	-	25,360.00
Salary expense	6,000.00		310.00		6,310.00	-
Supplies expense			1,800.00		1,800.00	-
Depreciation expense			460.00		460.00	-
Insurance expense			620.00		620.00	-
Totals	42,500.00	42,500.00	3,550.00	3,550.00	43,630.00	43,630.00

Journal
DATE	ACCOUNTS AND EXPLANATIONS	POST.	DEBIT	CREDIT
REF.
			$	$
30.6.2015	Supplies expenses A/c		1,800.00
	To Supplies A/c			1,800.00
	( Recorded supplies used during the year )
30.6.2015	Insurance A/c		620.00
	To Prepaid Insurance			620.00
	(Recorded prepaid insurance used during year )
30.6.2015	Depreciation expense		460.00
	Accumulated Depreciation			460.00
	( Deprecaition charged for the year on equipment recorded )
30.6.2015	Salary Expenses		310.00
	Salary payable			310.00
	( Salary unpaid during the year recorded)
30.6.2015	Unearned service revenue		360.00
	Service Revenue			360.00
	( Recorded unearned service revenue)