Adjusting entries
Good Note Company specializes in the repair of music equipment and is owned and operated by Robin Stahl. On November 30, 2014, the end of the current year, the accountant for Good Note Company prepared the following trial balances:
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Good Note Company Trial Balances November 30, 2014 |
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Unadjusted |
Adjusted |
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Debit Balances |
Credit Balances |
Debit Balances |
Credit Balances |
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Cash . |
38,250 |
38,250 |
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Accounts Receivable |
89,500 |
89,500 |
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Supplies |
11,250 |
2,400 |
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Prepaid Insurance |
14,250 |
3,850 |
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Equipment . |
290,450 |
290,450 |
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Accumulated Depreciation—Equipment |
94,500 |
106,100 |
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Automobiles |
129,500 |
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Accumulated Depreciation—Automobiles . . |
54,750 |
62,050 |
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Accounts Payable |
24,930 |
26,130 |
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Salaries Payable . |
8,100 |
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Unearned Service Fees . |
18,000 |
9,000 |
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Capital Stock |
100,000 |
100,000 |
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Retained Earnings . |
224,020 |
224,020 |
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Dividends . . |
75,000 |
75,000 |
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Service Fees Earned |
733,800 |
742,800 |
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Salary Expense . . |
516,900 |
525,000 |
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Rent Expense |
54,000 |
54,000 |
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Supplies Expense |
8,850 |
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Depreciation Expense—Equipment . . |
11,600 |
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Depreciation Expense—Automobiles |
7,300 |
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Utilities Expense . |
12,900 |
14,100 |
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Taxes Expense |
8,175 |
8,175 |
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Insurance Expense . |
10,400 |
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Miscellaneous Expense . |
9,825 |
9,825 |
, |
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|
1,250,000 |
1,250,000 |
1,250,000 |
1,250,000 |
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Instructions
Journalize the seven entries that adjusted the accounts at November 30. None of the accounts were affected by more than one adjusting entry.