Kinokawa Consultants Companys trial balance on December 31, 2014, follows. The following information is also available: a.

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Kinokawa Consultants Company€™s trial balance on December 31, 2014, follows.

Kinokawa Consultants Company€™s trial balance on December 31, 2014, follows.

The following information is also available:
a. Ending inventory of office supplies, $86
b. Prepaid rent expired, $700
c. Depreciation of office equipment for the period, $600
d. Interest accrued on the note payable, $600
e. Salaries accrued at the end of the period, $200
f. Service revenue still unearned at the end of the period, $1,410
g. Service revenue earned but not billed, $600

REQUIRED
1. Open T accounts for the accounts in the trial balance plus the following: Interest Payable; Salaries Payable; Office Supplies Expense; Depreciation Expense€”Office Equipment; and Interest Expense. Enter the account balances.
2. Determine the adjusting entries and post them directly to the T accounts.
3. Prepare an adjusted trial balance.
4. Which financial statements do each of the above adjustments affect? What financial statement is not affected by theadjustments?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For  answer-question

Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

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