Question

Required: a. Use Excel to create an unadjusted trial balance for Post Plumbing, Inc. at January 31, 2019. b. Prepare the adjusting journal entries for the month of January. Create additional accounts as necessary. c. Post all adjusting journal entries necessary to your Excel trial balance. d. Use Excel to create the adjusted trial balance. e. Prepare an unclassified balance sheet at January 31, 2019.The following account balances are provided for Post Plumbing, Inc. at January 31, 2019:

Cash $ 372,100

Accounts Receivable 359,000

Investments 30,000

Spare parts and supplies 38,000

Prepaid salaries expense 9,000

Prepaid rent 36,000

Equipment 721,850

Accounts payable 18,200

Interest payable 280

Unearned Revenue 22,000

Notes payable 35,000

Bank loan 426,000

Common Stock 625,000

Retained Earnings 99,150

Service Revenue 413,000

Interest Revenue 300

Parts and supplies expense 16,000

Loss on sale of investments 2,980

Salaries expense 50,000

Utilities expense 1,200

Advertising expense 2,800

The following additional information is provided for the month ending January 31, 2019:

1. Rent is paid through March 31, 2019.

2. Depreciation expense for the month was $9,950.

3. $3,800 of services paid for in December were rendered during January.

4. A physical count showed $29,000 of supplies on hand on January 31, 2019.

5. $3,500 of wages earned from January 27-31 will be paid in February.

6. The interest rate on the $35,000 note payable is 5%.

7. Received a January phone bill for $480 on February 4.

8. The investment balance includes an $18,000 note receivable with an interest rate of 2%.

9. Company purchases long-term disability insurance for its employees. The monthly premium is .25% of salaries expense and is payable quarterly.

10. The income tax rate is 21%

Answer 1

Un-adjusted Trial Balance
	Debit	Credit
Cash	372,100
Accounts Receivable	359,000
Investments	30,000
Spare parts and supplies	38,000
Prepaid salaries expense	9,000
Prepaid rent	36,000
Equipment	721,850
Accounts payable		18,200
Interest payable		280
Unearned Revenue		22,000
Notes payable		35,000
Bank loan		426,000
Common Stock		625,000
Retained Earnings		99,150
Service Revenue		413,000
Interest Revenue		300
Parts and supplies expense	16,000
Loss on sale of investments	2,980
Salaries expense	50,000
Utilities expense	1,200
Advertising expense	2,800
	1,638,930	1,638,930

Rent	Debit	12,000
Prepaid Rent	Credit		12,000
Depreciation	Debit	9,950
Equipment	Credit		9,950
Unearned Revenue	Debit	3,800
Service Revenue	Credit		3,800
Wages	Debit	3,500
Wages Payable	Credit		3,500
Interest	Debit	1,750
Interest Outstanding	Credit		1,750
Utilities Expenses	Debit	480
Expense Outstanding	Credit		480
Interest Receivable	Debit	360
Interest	Credit		360
Insurance premium	Debit	125
Insurance Premium Payable	Credit		125

	Un-adjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	372,100				372,100	-
Accounts Receivable	359,000				359,000	-
Investments	30,000				30,000	-
Spare parts and supplies	38,000				38,000	-
Prepaid salaries expense	9,000				9,000	-
Prepaid rent	36,000		(12,000)		24,000	-
Rent			12,000		12,000	-
Equipment	721,850		(9,950)		711,900	-
Depreciation			9,950		9,950	-
Accounts payable		18,200			-	18,200
Interest payable		280			-	280
Unearned Revenue		22,000		-3800	-	18,200
Notes payable		35,000			-	35,000
Bank loan		426,000			-	426,000
Common Stock		625,000			-	625,000
Retained Earnings		99,150			-	99,150
Service Revenue		413,000		3800	-	416,800
Interest Revenue		300			-	300
Parts and supplies expense	16,000				16,000	-
Loss on sale of investments	2,980				2,980	-
Salaries expense	50,000				50,000	-
Wages			3,500		3,500	-
Wages Payable				3500	-	3,500
Interest			1,750	360	1,750	360
Interest Outstanding				1750	-	1,750
Interest Receivable			360		360	-
Utilities expense	1,200		480		1,680	-
Expense Outstanding				480	-	480
Advertising expense	2,800				2,800	-
Insurance premium			125		125	-
Insurance Premium Payable				125	-	125
	1,638,930	1,638,930	6,215	6,215	1,645,145	1,645,145