Bella Beauty Salon’s unadjusted trial balance for the current year follows:
Additional information:
a. An insurance policy examination showed $1,400 of expired insurance.
b. An inventory count showed $280 of unused shop supplies still available.
c. Depreciation expense on shop equipment, $350.
d. Depreciation expense on the building, $2,220.
e. A beautician is behind on space rental payments, and this $200 of accrued revenue was unrecorded at the time the trial balance was prepared.
f. $800 of the Unearned Rent account balance was earned by year end.
g. The one employee, a receptionist, works a five day workweek at $50 per day. The employee was paid last week but has worked four days this week for which she has not been paid.
h. Three months’ property taxes, totaling $450, have accrued. This additional amount of property taxes expense has not been recorded.
i. One month’s interest on the note payable, $600, has accrued but is unrecorded.
| Based on the above information, prepare the adjusting journal entries for Bella’s Beauty Salon. Use the above information to prepare the adjusted trial balance for Bella’s Beauty Salon. |
Bella Beauty Salon Adjusting entries: Account titles Debits Credits a) Insurance expense $1,400 Prepaid insurance $1,400 b) Shop Supplies expense $710 Shop Supplies $710 c) Depreciation expense $350 Accumulated depreciation Shop eq. $350 d) Depreciation expense $2,220 Accumulated depreciation Building $2,220 e) Rent receivable $200 Rent revenue $200 f) Unearned rent $800 Rent revenue $800 g) Wages expense $200 Wages payable $200 h) Property taxes expense $450 Property taxes payable $450 i) Interest expense $600 Interest payable $600 Adjusted Trial Balance as on Dec 31 Account titles Debits Credits Cash $4,200 Rent receivable $200 Prepaid insurance $80 Shop supplies $280 Shop equipment $3,860 Accumulated depreciation Shop equipment $1,120 Building $57,500 Accumulated depreciation Building $6,060 Land $55,000 Wages payable $200 Property taxes payable $450 Interest payable $600 Unearned rent $800 Long term notes payable $50,000 Common stock $10,000 Retained earnings $39,860 Rent earned $3,400 Fees earned $23,400 Wages expense $3,400 Utilities expense $690 Property taxes expense $1,050 Insurance expense $1,400 Shop supplies expense $710 Depreciation expense Shop equipment $350 Depreciation expense Building $2,220 Interest expense $4,950 Totals $135,890 $135,890
Attachments:
Fallon Comp P….xlsx
Comprehensive….docx