Preparing adjusting entries and preparing an adjusted trial balance First Class Maids Company, the cleaning service, started the preparation of its adjusted trial balance as follows:
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FIRST CLASS MAIDS COMPANY Preparation of Adjusted Trial Balance December 31, 2012 |
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|
|
Trial Balance |
|
|
Account |
Debit |
Credit |
|
Cash |
$ 700 |
|
|
Supplies |
3,000 |
|
|
Prepaid insurance |
800 |
|
|
Equipment |
29,000 |
|
|
Accumulated depreciation |
|
$ 7,000 |
|
Accounts payable |
|
2,800 |
|
Salary payable |
|
|
|
Unearned service revenue |
|
500 |
|
Common stock |
|
5,100 |
|
Retained earnings |
|
2,100 |
|
Dividends |
3,000 |
|
|
Service revenue |
|
25,000 |
|
Salary expense |
6,000 |
|
|
Supplies expense |
|
|
|
Depreciation expense |
|
|
|
Insurance expense |
|
|
|
Total |
$42,500 |
$42,500 |
During the 12 months ended December 31, 2012, First Class Maids
a. used supplies of $1,800.
b. used up prepaid insurance of $620.
c. used up $460 of the equipment through depreciation.
d. accrued salary expense of $310 that First Class Maids hasn’t paid yet.
e. earned $360 of the unearned service revenue.
Requirement
1. Prepare an adjusted trial balance. Use Exhibit 3 8 as a guide. Key each adjustment by letter.