Three years ago, T. Roderick organized Harbor Realty. At July 31, 2008, the end of the current year, the unadjusted trial balance of Harbor Realty appears as shown below.
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Harbor Realty Unadjusted Trial Balance July 31, 2008 |
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|
Debit |
Credit |
|
|
Balances |
Balances |
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|
Cash |
3,42,500 |
|
|
Accounts Receivable |
7,00,000 |
|
|
Supplies |
1,27,000 |
|
|
Prepaid Insurance |
62,000 |
|
|
Office Equipment |
51,65,000 |
|
|
Accumulated Depreciation |
9,70,000 |
|
|
Accounts Payable |
92,500 |
|
|
Wages Payable |
000 |
|
|
Unearned Fees |
1,25,000 |
|
|
T. Roderick, Capital |
29,00,000 |
|
|
T. Roderick, Drawing |
5,20,000 |
|
|
Fees Earned |
59,12,500 |
|
|
Wages Expense |
22,41,500 |
|
|
Depreciation Expense |
000 |
|
|
Rent Expense |
4,20,000 |
|
|
Utilities Expense |
2,71,500 |
|
|
Supplies Expense |
000 |
|
|
Insurance Expense |
000 |
|
|
Miscellaneous Expense |
1,50,500 |
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|
10,000,000 |
10,000,000 |
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The data needed to determine year end adjustments are as follows:
a. Supplies on hand at July 31, 2008, $380.
b. Insurance premiums expired during the year, $315.
c. Depreciation of equipment during the year, $4,950.
d. Wages accrued but not paid at July 31, 2008, $440.
e. Accrued fees earned but not recorded at July 31, 2008, $1,000.
f. Unearned fees on July 31, 2008, $750.
Instructions
1. Prepare the necessary adjusting journal entries. Include journal entry explanations.
2. Determine the balance of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.