Question

The ledger of Monty Company includes the following unadjusted balances: Prepaid Insurance $4,000, Service Revenue $56,000, and Salaries and Wages Expense $25,000. Adjusting entries are required for (a) expired insurance $1,200; (b) services performed $1,900, but unbilled and uncollected; and (c) accrued salaries payable $700.

Enter the unadjusted balances and adjustments into a worksheet and complete the worksheet for all accounts.

MONTY COMPANY Worksheet
		Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
Account Titles		Dr.		Cr.		Dr.		Cr.		Dr.		Cr.		Dr.		Cr.		Dr.		Cr.
Prepaid Insurance		enter an unadjusted debit balance		enter an unadjusted credit balance		enter a debit amount		enter a credit amount		enter an adjusted debit balance		enter an adjusted credit balance		enter a debit amount		enter a credit amount		enter a debit balance		enter a credit balance
Service Revenue		enter an unadjusted debit balance		enter an unadjusted credit balance		enter a debit amount		enter a credit amount		enter an adjusted debit balance		enter an adjusted credit balance		enter a debit amount		enter a credit amount		enter a debit balance		enter a credit balance
Salaries and Wages Expense		enter an unadjusted debit balance		enter an unadjusted credit balance		enter a debit amount		enter a credit amount		enter an adjusted debit balance		enter an adjusted credit balance		enter a debit amount		enter a credit amount		enter a debit balance		enter a credit balance
Accounts Receivable		enter an unadjusted debit balance		enter an unadjusted credit balance		enter a debit amount		enter a credit amount		enter an adjusted debit balance		enter an adjusted credit balance		enter a debit amount		enter a credit amount		enter a debit balance		enter a credit balance
Salaries and Wages Payable		enter an unadjusted debit balance		enter an unadjusted credit balance		enter a debit amount		enter a credit amount		enter an adjusted debit balance		enter an adjusted credit balance		enter a debit amount		enter a credit amount		enter a debit balance		enter a credit balance
Insurance Expense		enter an unadjusted debit balance		enter an unadjusted credit balance		enter a debit amount		enter a credit amount

 

 

2. Bridgeport Company shows the following balances in selected accounts of its adjusted trial balance.

Supplies		$26,000		Service Revenue		$105,000
Supplies Expense		9,000		Salaries and Wages Expense		43,000
Accounts Receivable		12,000		Utilities Expense		8,000
Dividends		18,000		Rent Expense		14,000
Retained Earnings		66,000

Prepare the closing entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
Account Titles	Dr	Cr	Dr	Cr	Dr	Cr	Dr	Cr	Dr	Cr
Prepaid Insurance	4000			1200	2800				2800
Service Revenue		56000		1900		57900		57900
Salaries and Wages Expense	25000		700		25700		25700
Accounts Receivable			1900		1900				1900
Salaries and Wages Payable				700		700				700
Insurance Expense			1200		1200		1200

All the requirements have been provided in the above table.