Backfield Shoeing sells snowshoes and offers a wide variety of courses and guided tours through the backcountry.

Question:

Backfield Shoeing sells snowshoes and offers a wide variety of courses and guided tours through the backcountry. Dave Norton, the owner, prepared the unadjusted trial balance at December 31, 2015, shown below.

To prepare the adjusting entries, the following data were assembled:
a. An inventory count shows that $135 in supplies remain on hand.
b. The one-year insurance policy was purchased at the beginning of September of the current year.
c. The equipment was purchased in 2014 and has an estimated useful life of eight years. Depreciation for the building was calculated at $1,400.
d. December 31 is the last working day of the calendar year for the four employees and they have been fully paid to year-end. They have each earned a $600 bonus that will be paid to them on January 15, 2016.
e. Spaces fill up fast for the winter course in January. As a result, four people have paid in advance for next year€™s course at $150 per person. These payments have been recorded in Course and Tour Revenue. The balance in the unearned revenue account can be attributed to a course that completed in November.
f. Backfield has paid $800 in advance for the summer groundskeeper. The grounds-keeper does not start until March 1. This transaction has not yet been recorded in error.
Instructions
1. Journalize the adjusting and correcting entries. Add additional accounts as needed.
2. Determine the balances of the accounts affected by the adjusting and correcting entries and prepare an adjusted trial balance. Assume no additional investments during the period.