Problem 3-3A

 

 

 

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.

 

 

MINOR ADVERTISING AGENCY
Trial Balance
December 31, 2012

 

 

Unadjusted

 

Adjusted

 

 

Dr.

 

Cr.

 

Dr.

 

Cr.

 

Cash

$ 11,000

 

$ 11,000

 

 

Accounts Receivable

20,000

 

21,500

 

 

Supplies

8,600

 

4,800

 

 

Prepaid Insurance

3,350

 

2,500

 

 

Equipment

60,000

 

60,000

 

 

Accumulated Depreciation—Equipment

 

$ 28,000

 

$ 34,000

 

Accounts Payable

 

5,000

 

5,000

 

Interest Payable

 

0

 

150

 

Notes Payable

 

5,000

 

5,000

 

Unearned Service Revenue

 

7,200

 

5,900

 

Salaries and Wages Payable

 

0

 

2,100

 

Owner’s Capital

 

25,500

 

25,500

 

Owner’s Drawings

12,000

 

12,000

 

 

Service Revenue

 

58,600

 

61,400

 

Salaries and Wages Expense

10,000

 

12,100

 

 

Insurance Expense

 

 

850

 

 

Interest Expense

350

 

500

 

 

Depreciation Expense

 

 

6,000

 

 

Supplies Expense

 

 

3,800

 

 

Rent Expense

4,000

 

4,000

 

 

 

$129,300

$129,300

$139,050

$139,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

 

 

 

Journalize the annual adjusting entries that were made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

 

 

Date

Account Titles and Explanation

Debit

Credit

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record accrued revenue.)

 

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record revenue earned.)

 

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record supplies used.)

 

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record depreciation.)

 

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record interest.)

 

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record expired insurance.)

 

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record accrued salaries.)

 

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(b1)

 

 

The parts of this question must be completed in order. This part will be available when you complete the part above.

 

 

 

 

 

 

 

 

 

 

 

 

(b2)

 

 

The parts of this question must be completed in order. This part will be available when you complete the part above.

 

 

 

 

 

 

 

 

 

 

 

 

(b3)

 

 

The parts of this question must be completed in order. This part will be available when you complete the part above.

 

 

 

 

 

 

 

 

 

 

 

 

(c)

 

 

The parts of this question must be completed in order. This part will be available when you complete the part above.

 

 

 

 

 

 

 

 

 

 

 

 

 

Copyright © 2000-2013 by John Wiley & Sons, Inc. or related companies. All rights reserved.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Problem 3-3A

 

 

 

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.

 

 

MINOR ADVERTISING AGENCY
Trial Balance
December 31, 2012

 

 

Unadjusted

 

Adjusted

 

 

Dr.

 

Cr.

 

Dr.

 

Cr.

 

Cash

$ 11,000

 

$ 11,000

 

 

Accounts Receivable

20,000

 

21,500

 

 

Supplies

8,600

 

4,800

 

 

Prepaid Insurance

3,350

 

2,500

 

 

Equipment

60,000

 

60,000

 

 

Accumulated Depreciation—Equipment

 

$ 28,000

 

$ 34,000

 

Accounts Payable

 

5,000

 

5,000

 

Interest Payable

 

0

 

150

 

Notes Payable

 

5,000

 

5,000

 

Unearned Service Revenue

 

7,200

 

5,900

 

Salaries and Wages Payable

 

0

 

2,100

 

Owner’s Capital

 

25,500

 

25,500

 

Owner’s Drawings

12,000

 

12,000

 

 

Service Revenue

 

58,600

 

61,400

 

Salaries and Wages Expense

10,000

 

12,100

 

 

Insurance Expense

 

 

850

 

 

Interest Expense

350

 

500

 

 

Depreciation Expense

 

 

6,000

 

 

Supplies Expense

 

 

3,800

 

 

Rent Expense

4,000

 

4,000

 

 

 

$129,300

$129,300

$139,050

$139,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

 

 

 

Journalize the annual adjusting entries that were made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

 

 

Date

Account Titles and Explanation

Debit

Credit

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record accrued revenue.)

 

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record revenue earned.)

 

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record supplies used.)

 

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record depreciation.)

 

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record interest.)

 

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record expired insurance.)

 

 

Dec. 31

 

 

 

 

 

 

 

 

 

 

 

 

(To record accrued salaries.)

 

Click here if you would like to Show Work for this question

 

 

 

 

 

Attempts: 0 of 2 used

 

 

Save for later

 

Submit Answer

 

 

 

 

 

 

 

 

 

 

 

 

 

(b1)

 

 

The parts of this question must be completed in order. This part will be available when you complete the part above.

 

 

 

 

 

 

 

 

 

 

 

 

(b2)

 

 

The parts of this question must be completed in order. This part will be available when you complete the part above.

 

 

 

 

 

 

 

 

 

 

 

 

(b3)

 

 

The parts of this question must be completed in order. This part will be available when you complete the part above.

 

 

 

 

 

 

 

 

 

 

 

 

(c)

 

 

The parts of this question must be completed in order. This part will be available when you complete the part above.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Copyright © 2000-2013 by John Wiley & Sons, Inc. or related companies. All rights reserved.