Question

Brave Advisors Service’s trial balance on December 31, 2014, is as follows.


The following information is also available:
a. Ending inventory of office supplies, $264
b. Prepaid rent expired, $440
c. Depreciation of office equipment for the period, $660
d. Accrued interest expense at the end of the period, $550
e. Accrued salaries at the end of the period, $330
f. Service revenue still unearned at the end of the period, $1,166
g. Service revenue earned but unrecorded, $2,200

REQUIRED
1. Open T accounts for the accounts in the trial balance plus the following: Interest Payable; Salaries Payable; Office Supplies Expense; Depreciation Expense—Office Equipment; and Interest Expense. Enter the balances shown on the trial balance.
2. Determine the adjusting entries and post them directly to the T accounts.
3. Prepare an adjusted trial balance.
4. Which financial statements do each of the above adjustments affect? Which financial statement is not affected by theadjustments?


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  • CreatedMarch 26, 2014
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