(Adjusting Entries, Posting, and Preparing an Adjusted Trial Balance)
Powerhouse Consulting
Chart of Accounts:
|
No. 101 |
Cash |
|
No. 112 |
Accounts Receivable |
|
No. 126 |
Supplies |
|
No. 130 |
Prepaid Insurance |
|
No. 149 |
Office Furniture |
|
No. 150 |
Accumulated Depreciation – Office Furniture |
|
No. 201 |
Accounts Payable |
|
No. 209 |
Salaries Payable |
|
No. 212 |
Travel Payable |
|
No. 229 |
Unearned Revenue |
|
No. 311 |
Common Stock |
|
No. 400 |
Service Revenue |
|
No. 717 |
Depreciation Expense |
|
No. 722 |
Insurance Expense |
|
No. 726 |
Rent Expense |
|
No. 729 |
Salaries Expense |
|
No. 731 |
Supplies Expense |
|
No. 736 |
Travel Expense |
Leo Drayton started his own consulting firm, Powerhouse Consulting, on August 1, 2010.
The trial balance at August 31, 2010 is as follows:
Powerhouse Consulting Trial Balance
August 31, 2010
Other Data:
1) $900 of supplies is on hand at the end of the month
2) Travel Expense incurred but not paid as of August 31, 2010 is $400
3) The insurance policy is for 2 years
4) $1,300 of the balance in the unearned revenue account has been earned at the end of the month.
5) Accrued salaries at the end of the month are $1,600
6) The office furniture is depreciated at a rate of $170 per month for 60 months
7) $1,200 of services earned has not been recorded or paid as of August 31, 2010.
Instructions
(a) Prepare the adjusting entries for August on the tab labeled General Journal
(b) Enter the totals from the trial balance above as beginning balances on the tab labeled Ledger Accounts
(c) Post the adjusting entries to the ledger accounts on the tab labeled Ledger Accounts.
(Be sure to calculate the balance in the account after each posted transaction)
(d) Prepare an adjusted trial balance at August 31, 2010 on the tab labeled Adjusted Trial Balance