The unadjusted trial balance of Concord Bed and Breakfast Company at December 31, 2014, and the data needed for the adjustments follow.

Adjustment data at December 31 follow:
a. As of December 31, Concord had $ 900 of Prepaid Insurance remaining.
b. At the end of the month, Concord had $ 900 of office supplies remaining.
c. Depreciation on the building is $ 1,000.
d. Concord pays its employees on Friday for the weekly salaries. Its employees earn $ 1,500 for a five-day workweek. December 31 falls on Wednesday this year.
e. On November 20, Concord contracted to perform services for a client receiving $ 3,000 in advance. Concord recorded this receipt of cash as Unearned Revenue. As of December 31, Concord has $ 2,200 still unearned.

Requirements
1. Journalize the adjusting entries on December 31.
2. Using the unadjusted trial balance, open the accounts (use a four-column ledger) with the unadjusted balances. Post the adjusting entries to the ledger accounts.
3. Prepare the adjusted trial balance.
4. Assuming the adjusted trial balance has total debits equal to total credits, does this mean that the adjusting entries have been recorded correctly?Explain.

Transcribed Image Text:

CONCORD BED AND BREAKFAST COMPANY Unadjusted Trial Balance December 31, 2014 Balance Deblt Credit Account Title Cash Acco ts Receivable Prepaid inaurance Office Supplles Building Accumulated Depreciation-uilang Accounts Payable Salaries Payable Uhearned Revenue Common 5tock DivMdends Service Revenue Salarles Expense Insurance Expense 5 12,020 14.400 2.800 1,400 435.000 5 310.500 1,930 3,000 141,060 2.940 15,700 2,800 Advertising Expense Supplies Expense Total 850 5 472.190 $ 472,190