Assignment #3: Adjusting Entries, Adjusted Trial Balance,

Instructions
General Instructions:
1. Individual Assignment
2. Submission date is 4th December, 2020 till11:59PM
3. Assignment should be submitted through moeillim
4. Delayed assignments are unacceptable and there is no second say about this.
Specific Instructions
Read the following problem keenly and thoroughly and fulfill the requirements given at the end
of the problem.

Problem:
Terrific Temps fills temporary employment positions for local businesses. Some businesses pay
in advance for services; others are billed after services have been performed. Advanced
payments are credited to an account entitled Unearned Fees. Adjusting entries are performed on
a monthly basis. An unadjusted trial balance dated December 31, 2011, follows. (Bear in mind
that adjusting entries have already been made for the first 11 months of 2011, but not for
December.)
Other Data
1. Accrued but unrecorded fees earned as of December 31, 2011, amount to $1,673.

2. Records show that $2,456 of cash receipts originally recorded as unearned fees had been
earned as of December 31.

3. The company purchased a six-month insurance policy on September 1, 2011, for $1,800.

4. On December 1, 2011, the company paid its rent through February 28, 2012.

5. Office supplies on hand at December 31 amount to $400.

 6. All equipment was purchased when the business first formed. The estimated life of the
equipment at that time was 10 years (or 120 months).

7. On August 1, 2011, the company borrowed $12,000 by signing a six-month, 8 percent note
payable. The entire note, plus six months’ accrued interest, is due on February 1, 2012.

8. Accrued but unrecorded salaries at December 31 amount to $2,850.

9. Estimated income taxes expense for the entire year totals $15,000. Taxes are due in the first
quarter of 2012.

Requirements:

A. For each of the above transactions, prepare the necessary adjusting entry (including an
explanation) and adjusted Trial Balance.

B. Determine that amount at which each of the following accounts will be reported in the
company’s Adjusted Trial Balance

1. Fees Earned
2. Travel Expense
3. Insurance Expense
4. Rent Expense
5. Office Supplies Expense
6. Utilities Expense
7. Depreciation Expense: Equipment
8. Interest Expense
9. Salaries Expense
10. Income Taxes Expense