(Adjusting Entries, Posting, and Preparing an Adjusted Trial Balance)

Powerhouse Consulting

Chart of Accounts:

No. 101


No. 112

Accounts Receivable

No. 126


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.


(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