The following six-column table for Solutions Co. includes the unadjusted trial balance as of December 31.

Required

1. Complete the six-column table by entering adjustments that reflect the following information.
a. As of December 31, employees had earned $400 of unpaid and unrecorded wages. The next payday is January 4, at which time $1,200 in wages will be paid.
b. Cost of supplies still available at December 31 is $3,450.
c. An interest payment is made every three months. The amount of unrecorded accrued interest at December 31 is $800. The next interest payment, at an amount of $900, is due on January 15.
d. Analysis of Unearned Revenue shows that $3,200 remains unearned at December 31.
e. Revenue of $2,450 is accrued for services provided. Payment will be collected on January 31.
f. Depreciation expense is $3,800.

2. Prepare journal entries for adjustments entered in the six-column table for part 1.
3. Prepare journal entries to reverse the effects of the adjusting entries that involve accruals.
4. Prepare journal entries to record cash payments and cash collections described in part 1 for January.

Transcribed Image Text:

Unadjusted Adjusted Adjustments Cr. Trial Balance Trial Balance Account Title Cash Accounts receivable Supplies Machinery Accumulated depreciation-Machinery Interest payable Salaries payable Cr. Dr. $ 10,000 Cr. Dr. Dr. 7,600 50,000 $ 20,000 Unearned revenue Notes payable G. Clay, Capital G. Clay, Withdrawals Services revenue 7,200 30,000 14,200 9,500 32,450 Depreciation expense- Machinery Salaries expense Interest expense Supplies expense 24,500 2,250 Totals $103,850 $103,850