PR 3-4B Adjusting entries
Goldfinch Company specializes in the maintenance and repair of signs, such as billboards. On January 31, 2012, the accountant for Goldfinch Company prepared the following trial balances:
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Goldfinch Company |
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Trial Balance |
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January 31, 2012 |
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Unadjusted |
Adjusted |
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Debit |
Credit |
Debit |
Credit |
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Balances |
Balances |
Balances |
Balances |
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Cash |
4,750 |
4,750 |
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Accounts Receivable |
17,400 |
17,400 |
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Supplies |
6,200 |
1,475 |
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Prepaid Insurance |
9,000 |
2,700 |
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Land |
50,000 |
50,000 |
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Buildings |
120,000 |
120,000 |
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Accumulated Depreciation—Buildings |
51,500 |
60,000 |
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Trucks |
75,000 |
75,000 |
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Accumulated Depreciation—Trucks |
12,000 |
13,550 |
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Accounts Payable |
6,920 |
8,000 |
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Salaries Payable |
— |
750 |
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Unearned Service Fees |
10,500 |
6,000 |
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Marsha Parlik, Capital |
156,400 |
156,400 |
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Marsha Parlik, Drawing |
7,500 |
7,500 |
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Service Fees Earned |
162,680 |
167,180 |
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Salary Expense |
80,000 |
80,750 |
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Depreciation Expense—Trucks |
— |
1,550 |
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Rent Expense |
11,900 |
11,900 |
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Supplies Expense |
— |
4,725 |
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Utilities Expense |
6,200 |
7,280 |
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Depreciation Expense—Buildings |
— |
8,500 |
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Taxes Expense |
2,900 |
2,900 |
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Insurance Expense |
— |
6,300 |
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Miscellaneous Expense |
9,150 |
9,150 |
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400,000 |
400,000 |
411,880 |
411,880 |
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Instructions
Journalize the seven entries that adjusted the accounts at January 31. None of the accounts were affected by more than one adjusting entry.