The trial balance of Novelty Nook, Inc., at June 30, 201 2, and the data needed for the month-end adjustments follow:

a. Insurance coverage still remaining at June 30, $400.
b. Supplies used during the month, $800.
c. Depreciation for the month, $2,500.
d. Accrued utilities expense at June 30, $900. (Use Accounts Payable as the liability account needed.)
e. Accrued salaries at June 30, $800.
f. Service revenue still unearned at June 30, $1,200.

Requirements
1. Open T-accounts for the accounts listed in the trial balance and insert their June 30 unadjusted balances.
2. Journalize the adjusting entries and post them to the T-accounts. Reference the posted amounts by letters, (a) through (f). Calculate the adjusted balance in each account.
3. Prepare the adjusted trial balance at June 30, 2012.
4. How will the company use the adjusted trialbalance?

Transcribed Image Text:

Novelty Nook, Inc Trial Balance June 30, 2012 ACCOUNT Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation, Equipment Accounts Payable Salaries Payable Unearned Service Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Insurance Expense Depreciation Expense Utilities Expense Supplies Expense Total DEBIT CREDIT S 22,800 19,700 2,300 1,700 85,000 S 24.000 2,000 2,500 70,000 33,500 8,100 11,000 3,400 $143,000