FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:A.
D.
30
31 b) At the end of the month, Guthrie had $500 of office remaining
32
33 c) Depreciation on the building is $1,200
34
d) Guthrie pays its employees weekly on Friday. It employees earn $1800 for a five day work week. December 31 falls on a
35 Friday
36
e) On November 20, Guthrie contracted to perform services for a client receiving $3,600 in advance. Guthrie recorded this
37 receipt of cash as Unearned Revenue. As of December 31, Guthrie has $1,600 still unearned.
38
39 Requirement
40 1) Journalize the adjusting entries on December 31
41
2) Using the unadjusted trial balance, open the T Account/ ledger for all the accounts with unadjusted balances. Post the
42 adjusting entries to the ledger accounts. Balance off each account.
44 3) Prepare the adjusted trail balance
46 4) Prepare the income statement
48 5) Prepare the statement of equity
50. 6) Prenare the balance sheet
Transcribed Image Text:D.
Debit
Credit
6 Account Title
7 Cash
8Accounts Receivable
9 Prepaid Expense
10 Office Supplies
11 Building
12 Accumulated Depreciation Buildings
13 Accounts Payable
14 Salaries Payable
15 Unearned Revenue
16 Guthrie, Capital
17 Guthrie, Withdrawals
18 Service Revenue
19 Salaries Expense
20 Insurance Expense
21 Depreciation Expense
22 Advertising Expense
23 Supplies
24 Total
13,500
15,100
4,600
800
530,000
260,000
1,710
3,600
288,950
2,340
15,500
2,800
620
569,760
569,760
25
26
27 Adjustment data at December 31 follow:
28
29 a) As of December 31, Guthrie had $700 of prepaid insurance remaining
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