Preparing and posting adjusting journal entries; preparing an adjusted trial balance and financial statements. The trial balance of Concord Bed and Breakfast Corporation at December 31, 2012, and the data needed for the month end adjustments follow.
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CONCORD BED AND BREAKFAST CORPORATION Trial Balance December 31, 2012 |
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|
Account |
Debit |
Credit |
|
Cash |
$ 12,000 |
|
|
Accounts receivable |
14,400 |
|
|
Prepaid insurance |
2,800 |
|
|
Supplies |
1,400 |
|
|
Building |
435,000 |
|
|
Accumulated depreciation |
|
$310,500 |
|
Accounts payable |
|
1,930 |
|
Salary payable |
|
|
|
Unearned service revenue |
|
3,000 |
|
Common stock |
|
122,000 |
|
Retained earnings |
|
19,060 |
|
Dividends |
2,940 |
|
|
Service revenue |
|
15,700 |
|
Salary expense |
2,800 |
|
|
Insurance expense |
|
|
|
Depreciation expense |
|
|
|
Advertising expense |
850 |
|
|
Supplies expense |
|
|
|
Total |
$472,190 |
$472,190 |
Adjustment data at December 31 follow:
- Prepaid insurance still in force, $900.
- Supplies used during the month, $500.
- Depreciation for the month, $1,000.
- Accrued salary expense, $300.
- Unearned service revenue still unearned, $1,500.
Requirements
1. Journalize the adjusting entries.
2. The unadjusted balances have been entered for you in the general ledger accounts. Post the adjusting entries to the ledger accounts.
3. Prepare the adjusted trial balance.
4. Prepare the income statement, statement of retained earnings, and balance sheet for the business for the month ended December 31, 2012.