Lincoln Service Co., which specializes in appliance repair services, is owned and operated by Molly Jordan. Lincoln Service Co.'s accounting clerk prepared the following unadjusted trial balance at December 31, 2008, shown below.

The data needed to determine year-end adjustments are as follows:
a. Depreciation of building for the year, $3,500.
b. Depreciation of equipment for the year, $2,300.
c. Accrued salaries and wages at December 31, $1,100.
d. Unexpired insurance at December 31, $750.
e. Fees earned but unbilled on December 31, $3,250.
f. Supplies on hand at December 31, $525.
g. Rent unearned at December 31, $1,500.

Instructions
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 trialbalance.

Transcribed Image Text:

Lincoln Service Co Unadjusted Trial Balance December 31, 2008 Debit Credit Balances Balances 2,100 1,725 Building.... 37,850 Equipment .. 17,650 3,750 3,600 83,550 2,500 Fees Earned 128,600 14,100 6,100 275,000 275,000