Journalizing adjusting and closing entries The unadjusted trial balance and adjustment data of Elias Real Estate Appraisal Company at June 30, 2012, follow:
|
ELIAS REAL ESTATE APPRAISAL COMPANY Unadjusted Trial Balance June 30, 2012 |
||
|
Account Title |
Debit |
Credit |
|
Cash |
$4,900 |
|
|
Accounts receivable |
4,000 |
|
|
Supplies |
3,000 |
|
|
Prepaid insurance |
2,200 |
|
|
Building |
74,400 |
|
|
Accumulated depreciation |
|
$18,800 |
|
Land |
13,600 |
|
|
Accounts payable |
|
19,500 |
|
Interest payable |
|
8,800 |
|
Salary payable |
|
1,300 |
|
Common stock |
|
11,000 |
|
Retained earnings |
|
19,800 |
|
Dividends |
27,900 |
|
|
Service revenue |
|
97,900 |
|
Salary expense |
32,400 |
|
|
Depreciation expense |
0 |
|
|
Insurance expense |
4,200 |
|
|
Utilities expense |
4,000 |
|
|
Supplies expense |
6,500 |
|
|
Total |
$177,100 |
$177,100 |
Adjustment data at June 30, 2012:
- Prepaid insurance expired, $300.
- Accrued service revenue, $1,300.
- Accrued salary expense, $900.
- Depreciation for the year, $8,500.
- Supplies used during the year, $600.
Requirements
1. Open T accounts for Retained earnings and all the accounts that follow on the trial balance. Insert their unadjusted balances. Also open a T account for Income summary, which has a zero balance.
2. Journalize the adjusting entries and post to the accounts that you opened. Show the balance of each revenue account and each expense account.
3. Journalize the closing entries and post to the accounts that you opened. Draw double underlines under each account balance that you close to zero.
4. Compute the ending balance of Retained earnings