Determining Adjusting Entries, posting to t Accounts, and preparing an Adjusted trial Balance

p3. Kinokawa Consultants Company’s trial balance on December 31, 2014, follows.

 

Kinokawa Consultants Company trial Balance

December 31, 2014

 

 

Cash	12,786	Â
Accounts Receivable	24,840
Office Supplies	991
Prepaid Rent	1,400
Office Equipment	6,700
Accumulated Depreciation—Office Equipment	Â	Â	1,600
Accounts Payable	Â	Â	1,820
Notes Payable	Â	Â	10,000
Unearned Service Revenue	Â	Â	2,860
K. Wah, Capital	Â	Â	29,387
K. Wah, Withdrawals	15,000	Â	Â
Service Revenue	Â	Â	58,500
Salaries Expense	33,000	Â	Â
Utilities Expense	1,750	Â	Â
Rent Expense	7,700	Â	Â
Â	104,167	Â	104,167

 

 

The following information is also available:

a.     Ending inventory of office supplies, $86

b.     Prepaid rent expired, $700

c.     Depreciation of office equipment for the period, $600

d.    Interest accrued on the note payable, $600

e.     Salaries accrued at the end of the period, $200

f.      Service revenue still unearned at the end of the period, $1,410

g.     Service revenue earned but not billed, $600

 

REQUIRED

1.    Open T accounts for the accounts in the trial balance plus the following: Interest Payable; Salaries Payable; Office Supplies Expense; Depreciation Expense—Office Equipment; and Interest Expense. Enter the account balances.

2.    Determine the adjusting entries and post them directly to the T accounts.

3.    Prepare an adjusted trial balance.

4.    ACCounting  ConneCtion  ▶  Which  financial  statements  do  each  of   the above adjustments affect? What financial statement is not affected by the adjustments?