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Chapter 3 Adjusting Entries Pages 103 12
Chapter 3 Adjusting Entries Pages 103 12
Adjusting Entries
General Ledger
General Ledger
(adjustments in red)
Chapter 3, Adjusting Entries, pages 103 - 121
reference: Chapter 2, Recording Process, pages 63 - 72
Pioneer Company
Adjusted Trial Balance, October 31, 2012
1 Cash $ 15,200
2 Accounts Receivable 200
3 Supplies 1,000
4 PrePaid Insurance 550
5 Equipment 5,000
6 Accum Deprec - Equip 40
$ 30,190 $ 30,190
Chapter 3, Adjusting Entries, pages 103 - 121
reference: Chapter 2, Recording Process, pages 63 - 72
Income Statement
month ending October 31, 2012
Revenues
Service Revenues $ 10,600
Expenses
Salaries & Wages Expense (5,200)
Supplies Expense (1,500)
Rent Expense (900)
Insurance Expense (50)
Interest Expense (50)
Depreciation Expense (40)
Total Expenses (7,740)
Balance Sheet
month ending October 31, 2012
Assets
Cash $ 15,200
Accounts Receivable 200
Supplies 1,000
PrePaid Insurance 550
Equipment 5,000
Less: Accumulated Depreciation (40) 4,960
Owner's Equity
Owner's Capital 12,360
Total Liabilities & Owner's Equity $ 21,910
Chapter 3, Adjusting Entries, pages 103 - 121
reference: Chapter 2, Recording Process, pages 63 - 72
Statement of CashFlows
month ending October 31, 2012
General Journal
Date Account Titles & Explantion Debit Credit
General Ledger
Pioneer Company
Trial Balance, October 31, 2012
Trial Balance
Account Title Debit Credit
Cash $ 15,200
Supplies 2,500
PrePaid Insurance 600
Equipment 5,000
$ 28,700 $ 28,700
Chapter 3, P3-1A Adjusting Entries, page 137
McGEE COMPANY
General Journal
Date Account Titles & Explantion Debit Credit
Adjusting Entries
General Ledger
Accounts Payable
Date Debit(-) Credit(+) Balance
$4,500 $4,500
$ 150 4,650
Chapter 3, P3-1A Adjusting Entries, page 137
General Ledger
McGEE COMPANY
Adjusted Trial Balance, June 30, 2012
1 Cash $7,150
2 Accounts Receivable 7,200
3 Supplies 750
4 PrePaid Insurance 2,750
5 Equipment 15,000
6 Accum Deprec - Equipment 250
$41,650 $ 41,650
Chapter 3, Adjusting Entries, pages 103 - 121
Income Statement
month ending June 30, 2012
Revenues
Service Revenue 11,900 $ -
Expenses
Salaries & Wages Expense 5,900
Rent Expense 1,000
Utilities Expense 150
Supplies Expense 1,250
Insurance Expense 250
Depreciation Expense 250
Total Expenses 8,800
Balance Sheet
month ending June 30, 2012
Assets
Cash $ 7,150
Accounts Receivable 7,200
Supplies 750
PrePaid Insurance 2,750
Equipment 15,000
Less:Accum Deprec - Equip (250)
14,750
Total Assets $ 32,600
Owner's Equity
Owner's Capital 24,850
Total Liabilities & Owner's Equity $ 32,600
Chapter 3, P3-1A Adjusting Entries, page 137
P3-1A Tony Masasi started his own consulting fi rm, McGee Company, on June 1, 2012. The
trial balance at June 30 is shown below.
McGEE COMPANY
Trial Balance, June 30, 2012
Trial Balance
Account Title Debit Credit
Cash $7,150
Accounts Receivable 6,000
Supplies 2,000
PrePaid Insurance 3,000
Equipment 15,000
$38,150 $ 38,150
In addition to those accounts listed on the trial balance, the chart of accounts for McGee
Company also contains the following accounts and account numbers: No. 158 Accumulated
Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense,
No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 732 Utilities Expense.
Other data:
1. Supplies on hand at June 30 are $750.
2. A utility bill for $150 has not been recorded and will not be paid until next month.
3. The insurance policy is for a year.
4. $2,800 of unearned service revenue has been earned at the end of the month.
5. Salaries of $1,900 are accrued at June 30.
6. The equipment has a 5-year life with no salvage value. It is being depreciated at $250 per
month for 60 months.
7. Invoices representing $1,200 of services performed during the month have not been recorded
as of June 30.
Chapter 3, Adjusting Entries, P3-2A, pages 138-139
General Journal
Date Account Titles & Explantion Debit Credit
Adjusting Entries
General Ledger
-Utilities Expen
Date Debit(+) Credit(-) Balance
08/01/2012 $ 9,400 $ 9,400
Chapter 3, Adjusting Entries, P3-2A, pages 138-139
General Ledger
1 Cash $19,600
2 Accounts Receivable 4,000
3 Supplies 800
4 PrePaid Insurance 5,100
5 Land 25,000
6 Buildings 125,000
7 Equipment 26,000
8 Accum Deprec - Building 1,500
9 Accum Deprec - Equipment 600
$281,000 $ 281,000
Chapter 3, Adjusting Entries, P3-2A, pages 138-139
Income Statement
month ending August 31, 2012
Revenues
Rent Revenues $ 88,800
Expenses
Maintenance & Repair Expense (3,600)
Salaries & Wages Expense (51,400)
Utilities Expense (9,400)
Supplies Expense (2,500)
Insurance Expense (900)
Interest Expense (600)
Depreciation Expense (2,100)
Total Expenses (70,500)
Balance Sheet
month ending August 31, 2012
Assets
Cash $ 19,600
Accounts Receivable 4,000
Supplies 800
PrePaid Insurance 5,100
Land 25,000
Buildings 125,000
Less:Accum Deprec - Building (1,500) 123,500
Equipment 26,000
Less:Accum Deprec - Equip (600) 25,400
Owner's Equity
Owner's Capital 113,300
Total Liabilities & Owner's Equity $ 203,400
Chapter 3, Adjusting Entries, P3-2A, pages 138-139
Melton River Resort opened for business on June 1 with eight air-conditioned
units. Its trial balance before adjustment on August 31 is as follows.
Trial Balance
Account Title Debit Credit
Cash $19,600
Supplies 3,300
PrePaid Insurance 6,000
Land 25,000
Buildings 125,000
Equipment 26,000
$273,900 $ 273,900
In addition to those accounts listed on the trial balance, the chart of accounts for Melton River
Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable,
No. 144 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment,
No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 620 Depreciation Expense,
No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.
Other data:
1. Insurance expires at the rate of $300 per month.
2. A count on August 31 shows $800 of supplies on hand.
3. Annual depreciation is $6,000 on buildings and $2,400 on equipment.
4. Unearned rent revenue of $4,800 was earned prior to August 31.
5. Salaries of $400 were unpaid at August 31.
6. Rentals of $4,000 were due from tenants at August 31. (Use Accounts Receivable.)
7. The mortgage interest rate is 9% per year. (The mortgage was taken out on August 1.)
Chapter 3, Adjusting Entries, P3-3A , page 139
General Journal
Date Account Titles & Explantion Debit Credit
Adjusting Entries
General Ledger
-Interest Expense
Date Debit(+) Credit(-) Balance
12/01/2012 $ 350 $ 350
12/31 $ 150 500
Chapter 3, Adjusting Entries, P3-3A , page 139
General Ledger
Interest Payable
Date Debit(-) Credit(+) Balance
12/31 $ 150 $ 150
Chapter 3, Adjusting Entries, P3-3A , page 139
1 Cash $11,000
2 Accounts Receivable 21,500
3 Supplies 4,800
4 PrePaid Insurance 2,500
5 Equipment 60,000
6 Accum Deprec - Equipment 34,000
$139,050 $ 139,050
Chapter 3, Adjusting Entries, pages 103 - 121
Income Statement
month ending December 31, 2012
Revenues
Service Revenue $ 61,400
Expenses
Salaries & Wages Expense (12,100)
Supplies Expense (3,800)
Insurance Expense (850)
Rent Expense (4,000)
Interest Expense (500)
Depreciation Expense (6,000)
Total Expenses (27,250)
Balance Sheet
month ending December 31, 2012
Assets
Cash $11,000
Accounts Receivable 21,500
Supplies 4,800
PrePaid Insurance 2,500
Equipment 60,000
Less:Accum Deprec - Equip (34,000) 26,000
Owner's Equity
Owner's Capital 47,650
Total Liabilities & Owner's Equity $ 65,800
P3-A3 – C
(1) If the note has been outstanding 6 months, what is the annual interest rate on that note?
Based on the balance in interest payable, interest is $50 per month or 1% of the note
1% X 6 = 6 % interest per year
(2) If the company paid $12,500 in salaries in 2012, what was the balance in Salaries and
Wages Payable on December 31, 2011?
Salaries
& Wage
Expense
is
$12,100
Less
Salaries
& Wage
Payable
on
12/31/12
is $1,500
=
$10,000.
Total
payment
s =
$12,500
–
$10,000
= $2,500
Salaries
& Wage
Payable
on
12/31/11
Chapter 3, Adjusting Entries, P3-3A , page 139
P3-3A Minor Advertising Agency was founded by Brandon Minor in January of 2011. Presented
below are both the adjusted and unadjusted trial balances as of December 31, 2012.
Trial Balance
Unadjusted Adjusted
Account Title Debit Credit Debit Credit
Instructions
(a) Journalize the annual adjusting entries that were made.
(b) Prepare an income statement and an owner’s equity statement for the year ending
December 31, 2012, and a balance sheet at December 31.
(c) Answer the following questions.
(1) If the note has been outstanding 6 months, what is the annual interest rate on that note?
(2) If the company paid $12,500 in salaries in 2012, what was the balance in Salaries and
Wages Payable on December 31, 2011?
of the note payable ($ 5,000)
A review of the ledger of D. J. Moore Company at December 31, 2012, produces the following data pertaining to the preparatio
1. Salaries and Wages Payable $0. There are eight salaried employees. Salaries are paid every Friday for the current week. Fiv
2. Unearned Rent Revenue $224,676. The company began subleasing office space in its new building on November 1. At Dece
Term
Date (in months) Monthly Rent
Nov. 1 6 $5,184
Dec. 1 6 $8,355
3. Prepaid Advertising $16,301. This balance consists of payments on two advertising contracts. The contracts provide for mon
The first advertisement runs in the month in which the contract is signed.
4. Notes Payable $122,000. This balance consists of a note for one year at an annual interest rate of9%, dated June 1.
ery Friday for the current week. Five employees receive a salary of $950each per week, and three employees earn $680each per week. Ass
w building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the leas
Number of
Leases
4
2
cts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as follows.
Number of
Magazine
Issues
13
21
= $1,900
= 816
= $2,716
= $41,472
= 16,710
= $58,182
= $4,384
= 1,311
= $5,695
= $6,405
es earn $680each per week. Assume December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days
General Journal
Date Account Titles & Explantion Debit Credit
Trial Balance
Account Title Debit Credit
Cash $2,480
Accounts Receivable 4,420
Supplies 3,200
Equipment 18,000
Accum Deprec Equipment $1,500
$30,750 $ 30,750
Chapter 3, P3-5A Adjusting Entries, page 140
General Journal
Date Account Titles & Explantion Debit Credit
Adjusting Entries
1 Cash 2,480
2 Accounts Receivable 4,420
3 Supplies 1,300
4 Equipment 18,000
5 Accum Deprec Equipment 1,600
$31,150 $ 31,150
Chapter 3, P3-5A - Adjusting Entries, page 140
Income Statement
month ending September 30, 2012
Revenues
Service Revenue $ 6,950
Expenses
Rent Expense 500
Salaries & Wage Expense 2,450
Supplies Expense 1,900
Depreciation Expense 100
(4,950)
Total Expenses
Balance Sheet
month ending September 30, 2012
Assets
Cash $2,480
Accounts Receivable 4,420
Supplies 1,300
Equipment 18,000
Less:Accum Deprec - Equip (1,600) $16,400
Owner's Equity
Owner's Capital 20,600
Total Liabilities & Owner's Equity $ 24,600
Chapter 3, P3-5A Recording Process, page 140
P3-5A On September 1, 2012, the account balances of Moore Equipment Repair were as
follows.
Debits Credits
Cash $4,880 Accum Deprec Equipment $1,500
Accounts Receivable 3,520 Accounts Payable 3,400
Supplies 2,000 Unearned Service Revenue 1,400
Equipment 15,000 Salaries and Wages Payable 500
Owner’s Capital 18,600
$25,400 $25,400
General Journal
Date Account Titles & Explantion Debit Credit
Adjusting Entries
General Ledger
-Rent Expen
Date Debit(+) Credit(-) Balance
1/1/2012 $ 1,500 $1,500
Chapter 3, P3-6A Recording Process, page 141
General Ledger
1 Cash $8,600
Accounts Receivable 16,000
Supplies $1,500
PrePaid Insurance $1,800
Equipment 45,000
Accum Deprec - Equipment 1,125
$112,975 $ 112,975
Chapter 3, Adjusting Entries, pages 103 - 121
Income Statement
month ending August 31, 2012
Revenues
Rent Revenues
Expenses
Maintenance & Repair Expense
Salaries & Wages Expense
Utilities Expense
Supplies Expense
Insurance Expense
Interest Expense
Depreciation Expense
Total Expenses
Net Income
Balance Sheet
month ending August 31, 2012
Assets
Cash
Accounts Receivable
Supplies
PrePaid Insurance
Land
Buildings
Less:Accum Deprec - Building
Equipment
Less:Accum Deprec - Equip
Total Assets
Owner's Equity
Owner's Capital
Total Liabilities & Owner's Equity
Chapter 3, P3-6A Recording Process, page 141
* P3-6A Olsen Graphics Company was organized on January 1, 2012, by Gwen Olsen. At the
end of the fi rst 6 months of operations, the trial balance contained the accounts shown below.
Debits Credits
Cash $8,600 Notes Payable $20,000
Accounts Receivable 14,000 Accounts Payable 9,000
Equipment 45,000 Owner’s Capital 22,000
Insurance Expense 2,700 Sales Revenue 52,100
Salaries and Wages Expense 30,000 Service Revenue 6,000
Supplies Expense $3,700 $109,100
Advertising Expense 1,900
Rent Expense 1,500
Utilities Expense 1,700
$109,100
Instructions
(a) Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6
months.)
(b) Prepare an adjusted trial balance.
(c) Prepare an income statement and owner’s equity statement for the 6 months ended June 30
and a balance sheet at June 30.
General Journal
Date Account Titles & Explantion Debit Credit
Adjusting Entries
General Ledger
General Ledger
1 Cash $4,500
2 Accounts Receivable 7,700
3 Supplies 900
4 PrePaid Insurance 3,450
Equipment (furniture) 11,400
Accum Deprec - Equipment 190
$34,920 $ 34,920
Chapter 3, Adjusting Entries, pages 103 - 121
Income Statement
month ending May 31, 2012
Revenues
service Revenues $ 10,800
Expenses
Salaries & Wages Expense 4,480
Utilities Expense 250
Supplies Expense 1,000
Insurance Expense 150
Rent Expense 900
Depreciation Expense 190
Balance Sheet
month ending May 31, 2012
Assets
Cash $4,500
Accounts Receivable 7,700
Supplies 900
PrePaid Insurance 3,450
Equipment (furniture) 11,400
Accum Deprec - Equipment (190)
-
Owner's Equity
Owner's Capital 21,530
Total Liabilities & Owner's Equity $ 27,760
Chapter 3, P3-1B Adjusting Entries, pages 141-142
Fran Omiyale started her own consulting fi rm, Omiyale Consulting, on May 1, 2012. The
trial balance at May 31 is as follows.
Trial Balance
Account Title Debit Credit
Cash $4,500
Accounts Receivable 6,000
Supplies 1,900
PrePaid Insurance 3,600
Equipment 11,400
$31,700 $ 31,700
In addition to those accounts listed on the trial balance, the chart of accounts for Omiyale
Consulting also contains the following accounts and account numbers: No. 150 Accumulated
Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense,
No. 717 Depreciation Expense, No. 722 Insurance Expense, and No. 736 Utilities Expense.
Other data:
1. $900 of supplies have been used during the month.
2. Utilities expense incurred but not paid on May 31, 2012, $250.
3. The insurance policy is for 2 years.
4. $400 of the balance in the unearned service revenue account remains unearned at the end of
the month.
5. May 31 is a Wednesday, and employees are paid on Fridays. Omiyale Consulting has two
employees, who are paid $900 each for a 5-day work week.
6. The offi ce furniture has a 5-year life with no salvage value. It is being depreciated at $190 per
month for 60 months.
7. Invoices representing $1,700 of services performed during the month have not been recorded
as of May 31.
(c) Adj. trial balance $34,920 (adding 3220)
Chapter 3,Adjusting Entries, P3-2B, pages 142
General Journal
Date Account Titles & Explantion Debit Credit
Adjusting Entries
General Ledger
General Ledger
Cash $3,500
Supplies 750
Prepaid Insurance 2,200
Land 12,000
Buildings 60,000
Equipment $ 15,000
Accum Deprec - Building 250
Accum Deprec - Equipment 125
$101,305 $ 101,305
Chapter 3,Adjusting Entries, P3-2B, pages 142
Income Statement
month ending May 31, 2012
Revenues
Rent Revenues $ 12,500
Expenses
Salaries & Wages Expense 4,050
Advertising Expense 600
Supplies Expense 1,330
Utilities Expense 900
Insurance Expense 200
Interest Expense 400
Depreciation Expense 375
Balance Sheet
month ending May 31, 2012
Assets
Cash $3,500
Supplies 750
Prepaid Insurance 2,200
Land 12,000
Buildings 60,000
Equipment 15,000
Less:Accum Deprec - Building (250)
Less:Accum Deprec - Equip - (125)
Owner's Equity
Owner's Capital 46,025
Total Liabilities & Owner's Equity $ 93,075
Chapter 3,Adjusting Entries, P3-2B, pages 142
P3-2B The Bear Motel opened for business on May 1, 2012. Its trial balance before adjustment
on May 31 is as follows.
Trial Balance
Account Title Debit Credit
Cash $3,500
Supplies 2,080
Prepaid Insurance 2,400
Land 12,000
Buildings 60,000
Equipment 15,000
In addition to those accounts listed on the trial balance, the chart of accounts for Bear Motel
also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—
Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable,
No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest
Expense, and No. 722 Insurance Expense. ( 8 accounts)
Other data:
1. Prepaid insurance is a 1-year policy starting May 1, 2012.
2. A count of supplies shows $750 of unused supplies on May 31.
3. Annual depreciation is $3,000 on the buildings and $1,500 on equipment.
4. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.)
5. Two-thirds of the unearned rent revenue has been earned.
6. Salaries of $750 are accrued and unpaid at May 31.
Chapter 3, Adjusting Entries, P3-3B , page 143
Pererman Co.
General Journal
Date Account Titles & Explantion Debit Credit
Adjusting Entries
General Ledger
General Ledger
Pererman Co.
Adjusted Trial Balance, September 30, 2012
1 Cash $ 8,700
2 Accounts Receivable 11,500
3 Supplies 650
4 PrePaid Insurance 1,200
5 Equipment 18,000
6 Accum Deprec - Equipment 700
$56,435 $ 56,435
Chapter 3, Adjusting Entries, pages 103 - 121
Income Statement
month ending September 30, 2012
Revenues 2,260
Service Revenue $ 17,100
Expenses
Salaries & Wages Expense 2,900
Supplies Expense 8,725
Insurance Expense 850
Rent Expense 100
Interest Expense 700
Depreciation Expense 1,510
Total Expenses 14,785 (14,785)
Balance Sheet
month ending September 30, 2012
Assets
Cash $ 8,700
Accounts Receivable $ 11,500
Supplies $ 650
PrePaid Insurance $ 1,200
Equipment $ 18,000
Less:Accum Deprec - Equip (700)
Owner's Equity
Owner's Capital 24,975
Total Liabilities & Owner's Equity $ 39,350
Chapter 3, Adjusting Entries, P3-3B , page 143
P3-3B Peterman Co. was organized on July 1, 2012. Quarterly financial statements are prepared.
The unadjusted and adjusted trial balances as of September 30 are shown below.
Pererman Co.
Trial Balance, September 30, 2012
Trial Balance
Unadjusted Adjusted
Account Title Debit Credit Debit Credit
Instructions
(a) Journalize the adjusting entries that were made.
(b) Prepare an income statement and an owner’s equity statement for the 3 months ending
September 30 and a balance sheet at September 30.
(c) If the note bears interest at 12%, how many months has it been outstanding?
Net income $4,575 Total assets $39,350
Ending capital $24,975
P3-4B A review of the ledger of Roach Company at December 31, 2012, produces the following
data pertaining to the preparation of annual adjusting entries.
1. Prepaid Insurance $10,440. The company has separate insurance policies on its buildings and
its motor vehicles.
Policy B4564 on the building was purchased on April 1, 2011, for $7,920.
The policy has a term of 3 years.
Policy A2958 on the vehicles was purchased on January 1, 2012, for $4,500
This policy has a term of 2 years.
1-Nov 9 5,000 5
1-Dec 6 8,500 5
($122,000x9% =
Interest 10,800 for 12 month.
Payable For 1 month = 900
for 2 month Nov and
Dec = 1,800
Salaries and Wages Payable $0. There are eight salaried employees. Salaries are paid every
Friday for the current week. Five employees receive a salary of $700 each per week, and three
employees earn $500 each per week. Assume December 31 is a Tuesday. Employees do not
work weekends. All employees worked the last 2 days of December.
Salaries and
Wages Payable 5 x $700x 2/5 = $1,400
3 x $500x 2/5 = 600
$2,000
7,920 for 3 years so 220 per month and for 2012 .. 12 months , it is 2640 + 2250 = 4890 2640 + 2250 = 4890
4500 is for 2 years so for 1 year it is 2250
2. Unearned Rent Revenue $429,000. The company began subleasing offi ce space in its new
building on November 1. At December 31, the company had the following rental contracts
that are paid in full for the entire term of the lease.
of Leases
General Journal
Date Account Titles & Explantion Debit Credit
Trial Balance
Account Title Debit Credit
Cash $3,020
Accounts Receivable 2,730
Supplies 2,500
Equipment 14,000
Accum Deprec Equipment $2,000
$25,350 $ 25,350
Chapter 3, P3-5A Adjusting Entries, page 140
General Journal
Date Account Titles & Explantion Debit Credit
Adjusting Entries
1 Cash 3,020
2 Accounts Receivable 2,730
3 Supplies 1,400
4 Equipment 14,000
5 Accum Deprec Equipment 2,200
25,900 $ 25,900
Chapter 3, Recording Process,P3-5B page 144
Income Statement
month ending September 30, 2012
Revenues
Service Revenue $ 6,250
Expenses
Rent Expense 400
Salaries & Wage Expense 3,050
Supplies Expense 1,100
Depreciation Expense 200
4,750 (4,750)
Total Expenses
Balance Sheet
month ending September 30, 2012
Assets
Cash 3,020
Accounts Receivable 2,730
Supplies 1,400
Equipment 14,000
Less:Accum Deprec - Equip (2,200)
Owner's Equity
Owner's Capital 15,450
Total Liabilities & Owner's Equity $ 18,950
Chapter 3, Recording Process,P3-5B page 144
P3-5B On November 1, 2012, the account balances of Robinson Equipment Repair were as
follows.
Debits Credits
Cash $2,400 Accum Deprec Equipment $2,000
Accounts Receivable 4,250 Accounts Payable 2,600
Supplies 1,800 Unearned Service Revenue 1,200
Equipment 12,000 Salaries and Wages Payable 700
Owner’s Capital 13,950
$25,400 $25,400
Instructions
(a) Enter the November 1 balances in the ledger accounts.
(b) Journalize the November transactions.
(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following additional accounts:
No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense,
No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
(d) Prepare a trial balance at November 30.
(e) Journalize and post adjusting entries.
(f) Prepare an adjusted trial balance.
(g) Prepare an income statement and an owner’s equity statement for November and a balance
sheet at November 30.