The unadjusted trial balance for Swift Creek Engineering at its year end, December 31, 2021, is as follows:

Additional information:

1. Services of $10,440 were provided but unrecorded and uncollected as at December 31, 2021.

2. On June 1, the company purchased a one-year insurance policy.

3. Depreciation on the equipment for 2021 is $2,780.

4. A count on December 31, 2021, showed $1,750 of supplies on hand.

5. The four-month, 4% note receivable was issued on October 1, 2021. Interest and principal are payable on the maturity date.

Instructions

a. Prepare adjusting entries for the year ended December 31, 2021.

b. Post the adjusting entries.

c. Prepare closing entries.

Transcribed Image Text:

SWIFT CREEK ENGINEERING Trial Balance December 31, 2021 Debit Credit Cash $ 8,450 Accounts receivable Supplies Prepaid insurance 6,250 5,260 7,440 Notes receivable 12,000 27,800 Equipment Accumulated depreciation-equipment Accounts payable H. Duguay, capital H. Duguay, drawings Service revenue $ 8,340 4,560 34,900 53,500 112,300 Salaries expense 39,400 $160,100 $160,100