Adjusting Journal Entries

$
1-Oct-18 11,000

31-Oct-18 8,250

2,750 >>>

Adjusting entry Dr Unearned revenue

Cr

Unearned revenue
dr cr
2,750 11,000
Account Balance 8,250 Account Balance
@31 Oct 2018 @31 Oct 2018

c) Accrue wages expenses

Adjusting entry Dr Wages expenses

Cr

Wages payables
dr cr
2,500
Account Balance 2,500
@31 Oct 2018

d) Accruing un-billedd revenue

Adjusting entry Dr
 Acc receivables
dr cr
4,900 -
4,900
Account Balance
@31 Oct 2018

e) Depreciation of office equipment is $1,100

Adjusting entry Dr

Accumulated depreciaton
dr cr
1,100
1,100
Account Bala - 2,200
@31 Oct 2018

Assets
Fixed assets
Accumulated depreciation
Net Book value
 unearned rental income 4 months

rental revenue

Unearned revenue 2,750

Rental Revenue - Fee / Income 2,750

Rental revenue
dr cr
2,750
Account Balance 2,750
@31 Oct 2018

Wages expenses 2,500

Wages payables 2,500

Wages expenses
dr cr
2,500 -
Account Balance 2,500
@31 Oct 2018

Accounts receiveble 4,900

Cr Fee income/revenue 4,900
 Fee income
dr cr
4,900
Account Balance -
@31 Oct 2018

is $1,100

Depreciation expense 1,100

Cr Accumulated depreciation 1,100

depreciation expense
dr cr
1,100 -

1,100
Account Balance
@31 Oct 2018

10,000
(1,100)
8,900
Kelly Consulting _Trial Balaance Preparation case

STEP 1-2 ANALYSING AND RECORDING TRANSACTION IN THE JOURNAL

1) The following assets were received from Kelly Pitney: cash, $13,100; accounts
receivable, $3,000; supplies, $1,400; and office equipment, $12,500. There we
no liabilities received.

dr cash
dr account receivable
dr office supply
dr office equipment
cr ower's equity - Kelly

2) Paid three months’ rent on a lease rental contract, $4,800.

dr prepaid rent expense

cr cash
3) Paid the premiums on property and casualty insurance policies, $1,800.

dr Prepaid insurance
cr cash
4) Received cash from clients as an advance payment for services to be provided
and recorded it as unearned fees, $5,000.

dr cash
cr Uneraned revenue

5) Purchased additional office equipment on account from Office Station Co., $2,
 dr office equipment
cr accounts payables
6) Received cash from clients on account, $1,800.

dr cash
cr accunts receivavles
7) Paid cash for a newspaper advertisement, $120.

dr advertisment expense
cr cash

8) Paid Office Station Co. for part of the debt incurred on April 5, $1,200.

dr accounts payable
cr cash

9) Recorded services provided on account for the period April 1–12, $4,200.

dr account recevables
cr service revenue

10 ) Paid part-time receptionist for two weeks’ salary, $750.

dr salary expense
cr cash

11) Recorded cash from cash clients for fees earned during the period April 1–16,

dr cash
cr serivice revenue

12) Paid cash for supplies, $800.

 dr suppliers
cr cash

13) Recorded services provided on account for the period April 13–20, $2,100.

dr acc receivables
cr service revenue/fee

14) Recorded cash from cash clients for fees earned for the period April 17–24, $3

dr cash
cr service revenue/fee

15) Received cash from clients on account, $5,600.

dr cash
cr accounts receivbles

16) Paid part-time receptionist for two weeks’ salary, $750.

dr salary expense
cr cash

17) Paid telephone bill for April, $130.

dr telephone expense
cr cash
18) Paid electricity bill for April, $200.

dr electricity expense
cr cash

19) Recorded cash from cash clients for fees earned for the period April 25–30, $3
 dr cash
cr fee income

20) Recorded services provided on account for the remainder of April, $1,500.

dr account receivable
cr service revenue

21) Kelly withdrew $6,000 for personal use.

dr shareholder withdrawal
cr cash

STEP 3- PREPARE THE UN ADJUSTED TRIAL BALANCE

Kelluy consulting , 30 April 2012

Cash
Accounts receivables
Supplies
Prepaid rent
Prepaid insurance
Office equipment
Accumulated depreciation
Accounts payable
Salary payables
Unearned Fees
Kelly capital
Kelly withdrawal
Fees earned
Salary expenses
Rent expenses
Supplies expenses
Depreciation expense
Insurance expense
Miscellaneouse expense

Control
SACTION IN THE JOURNAL

om Kelly Pitney: cash, $13,100; accounts

nd office equipment, $12,500. There were

13,100
3,000
1,400
12,500
30,000

ntal contract, $4,800.

4800
4800
asualty insurance policies, $1,800.

1800
1800
nce payment for services to be provided

5000
5000

t on account from Office Station Co., $2,000.

 2000
2000
, $1,800.

1800
1800
ent, $120.

120
120

debt incurred on April 5, $1,200.

1200
1200

nt for the period April 1–12, $4,200.

4200
4200

eeks’ salary, $750.

750
750

es earned during the period April 1–16, $6,250.

6250
6250
 800
800

nt for the period April 13–20, $2,100.

2100
2100

es earned for the period April 17–24, $3,850.

3850
3850

, $5,600.
5600
5600

eeks’ salary, $750.

750
750

130
130

130
130

es earned for the period April 25–30, $3,050.

 3050
3050

nt for the remainder of April, $1,500.

1500
1500

6000
6000

ALANCE

Unadjusted Trial Balance Adjusting entries

Debit Credit Debit Credit
22,170
3,400 4900
2,200
4,800
1,800
14,500 1100
-
800
- 2500
5,000 2500
30,000
6,000
20,950 7400
1,500 2500
 -
- 0
- 1100
-
380
56,750 56,750 11,000 11,000
-
Ledger Debit Credit
Acc
Assets
Cash 22170 ok
Receivable 3400 ok
Supplies 2200 ok
Acc depr
Equip 14500 ok
Prepaid rent 4800 ok
Prepaid insurance 1800 ok
Owner's eq
Cpital 30000 ok
Withdrwal 6000 ok
Liabilities
Unearned fee 5000 ok
Accruals
Payable 800 ok
Revenue
Fees Earned 20950 ok

Expense
Depreciation
Rent exp
Insurance Expense
Supply exp
Mis expense
Electricity 130
T bill 130
Salary Exp 1500
Adv. Expense 120
Sum 56750 56750
 Adjusted Trial Balance
Debit Credit
22,170
8,300
2,200
4,800
1,800
13,400
-
800
2,500
2,500
30,000
6,000
28,350
4,000
 -
-
1100
-
380
64,150 64,150
-