Question: Clarity Services Co which specializes in appliance repair services is

Clarity Services Co., which specializes in appliance repair services, is owned and operated by Cindy Latty. Clarity Services Co.’s accounting clerk prepared the unadjusted trial balance at December 31, 2015, shown below.
The data needed to determine year-end adjustments are as follows:
a. Depreciation of building for the year, $2,100.
b. Depreciation of equipment for the year, $3,000.
c. Accrued salaries and wages at December 31, $800.
d. Unexpired insurance at December 31, $1,500.
e. Fees earned but unbilled on December 31, $2,150.
f. Supplies on hand at December 31, $600.
g. Rent unearned at December 31, $1,500.
1. Journalize the adjusting entries. Add additional accounts as needed.
2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.
3. Prepare an income statement, statement of owner’s equity, and balance sheet, assuming no new investment by Cindy.

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  • CreatedSeptember 15, 2015
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