Question

The June 30 unadjusted trial balance of Prime Realty appears as follows:
Additional Information:
1. Rent expires at a rate of $700 per month.
2. Monthly depreciation on equipment is $300.
3. Interest on the 6% promissory note is paid quarterly on April 1, July 1, October 1, and January 1.
4. Performed services for which payment was received in April, $800.
5. Received utility bill to be paid next month, $500.
6. Services to customers earned during June but unrecorded at June 30, $2,500.
7. Supplies on hand totaled $1,500 at June 30.
8. Owed employees for salaries for the last week of June to be paid in July, $800.
9. Prime Realty prepares adjusting entries each quarter. Adjustments were last made on March 31.
Required
a. Prepare all adjusting journal entries for the quarter ending June 30.
b. Post journal entries to T-accounts using totals on the unadjusted trial balance as the opening balances.
c. Prepare an adjusted trial balance as of June 30.
d. Prepare an income statement and a statement of retained earnings for the six months ending June 30.
e. Prepare a classified balance sheet as of June 30.


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  • CreatedJuly 16, 2015
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