The unadjusted trial balance and adjustment data of Smith Real Estate Appraisal Company at June 30, 2012,

Question:

The unadjusted trial balance and adjustment data of Smith Real Estate Appraisal Company at June 30, 2012, follow:


SMITH REAL ESTATE APPRAISAL COMPANY Unadjusted Trial Balance June 30, 2012 Account Title Debit Credit Cash 4,600 Account


Adjustment data at June 30, 2012:
a. Prepaid insurance expired, $400.
b. Accrued service revenue, $1,100.
c. Accrued salary expense, $700.
d. Depreciation for the year, $8,500.
e. Supplies used during the year, $100.
Requirements
1. Open T-accounts for Retained earnings and all the accounts that follow on the trial balance. Insert their unadjusted balances. Also open a T-account for Income summary, which has a zero balance.
2. Journalize the adjusting entries and post to the accounts that you opened. Show the balance of each revenue account and each expense account.
3. Journalize the closing entries and post to the accounts that you opened. Draw double underlines under each account balance that you close to zero.
4. Compute the ending balance of Retainedearnings.

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Related Book For  book-img-for-question

Financial and Managerial Accounting

ISBN: 978-0132497978

3rd Edition

Authors: Horngren, Harrison, Oliver

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