Analyzing and journalizing adjustments Showtime Theater Production Company’s unadjusted and adjusted trial balances at December 31, 2012, follow.
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SHOWTIME THEATER PRODUCTION COMPANY Adjusted Trial Balance December 31, 2012 |
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|
Trial Balance |
Adjusted Trial Balance |
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|
Account |
Debit |
Credit |
Debit |
Credit |
|
Cash |
$3,500 |
|
$3,500 |
|
|
Accounts receivable |
6,000 |
|
6,900 |
|
|
Supplies |
1,300 |
|
500 |
|
|
Prepaid insurance |
2,100 |
|
1,300 |
|
|
Equipment |
23,000 |
|
23,000 |
|
|
Accumulated depreciation |
|
$8,100 |
|
$11,600 |
|
Accounts payable |
|
5,000 |
|
5,000 |
|
Salary payable |
|
|
|
500 |
|
Common stock |
|
17,000 |
|
17,000 |
|
Retained earnings |
|
4,100 |
|
4,100 |
|
Dividends |
28,500 |
|
28,500 |
|
|
Service revenue |
|
59,600 |
|
60,500 |
|
Depreciation expense |
|
|
3,500 |
|
|
Supplies expense |
|
|
800 |
|
|
Utilities expense |
5,400 |
|
5,400 |
|
|
Salary expense |
24,000 |
|
24,500 |
|
|
Insurance expense |
|
|
800 |
|
|
Total |
$93,800 |
$93,800 |
$98,700 |
$98,700 |
Requirement
1. Journalize the adjusting entries that account for the differences between the two trial balances.