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

p6. Brave Advisors Service, Inc.’s trial balance on December 31, 2014, is as follows.

Brave Advisors service, Inc. trial Balance

December 31, 2014

 

 

Cash	16,500	Â
Accounts Receivable	8,250
Office Supplies	2,662
Prepaid Rent	1,320
Office Equipment	9,240
Accumulated Depreciation—Office Equipment	Â	Â	1,540
Accounts Payable	Â	Â	5,940
Notes Payable	Â	Â	11,000
Unearned Service Revenue	Â	Â	2,970
Common Stock	Â	Â	10,000
Retained Earnings	Â	Â	14,002
Dividends	22,000	Â	Â
Service Revenue	Â	Â	72,600
Salaries Expense	49,400	Â	Â
Rent Expense	4,400	Â	Â
Utilities Expense	4,280	Â	Â
Â	118,052	Â	118,052

 

 

The following information is also available:

a.     Ending inventory of office supplies, $264

b.     Prepaid rent expired, $440

c.     Depreciation of office equipment for the period, $660

d.    Accrued interest expense at the end of the period, $550

e.     Accrued salaries at the end of the period, $330

f.      Service revenue still unearned at the end of the period, $1,166

g.     Service revenue earned but unrecorded, $2,200

h.     Estimated income taxes for the period, $4,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ReQUIReD

1.    Open T accounts for the accounts in the trial balance plus the following: Interest Payable; Salaries Payable; Income Taxes Payable; Office Supplies Expense; Depre- ciation Expense—Office Equipment; Interest Expense; and Income Taxes Expense. Enter the balances shown on the trial balance.

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? Which financial statement is not affected by the adjustments?