Question: The trial balance for Financial Service Inc on December 31

The trial balance for Financial Service, Inc., on December 31 follows.

The following information is also available:
a. Ending inventory of office supplies, $150.
b. Prepaid rent expired, $305.
c. Depreciation of office equipment for the period, $263.
d. Accrued interest expense at the end of the period, $285.
e. Accrued salaries at the end of the period, $165.
f. Service revenue still unearned at the end of the period, $583.
g. Service revenue earned but unrecorded, $1,550.
h. Estimated income taxes for the period, $2,100.

1. Open T accounts for the accounts in the trial balance plus the following: Interest Payable, Salaries Payable, Income Taxes Payable, Office Supplies Expense, Depreciation Expense—Office Equipment, Interest Expense, and Income Taxes 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. What financial statements does each of the above adjustments affect? What financial statement is not affected by theadjustments?
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  • CreatedSeptember 10, 2014
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