Adjusting Entries Dole Carpet Cleaners ended its first month of operations on June 30. Monthly financial statements will be prepared. The unadjusted account balances are as follows:

DOLE CARPET CLEANERS Unadjusted Trial Balance June 30, 2012
		Debit		Credit
Cash		$1,180
Accounts Receivable		450
Prepaid Rent		3,100
Supplies		2,520
Equipment		4,464
Accounts Payable				784
Common Stock				2,500
Retained Earnings				5,000
Dividends		200
Service Fees Earned				4,650
Wages Expense		1,020
Totals		$12,934		$12,934

The following information is also available:

The balance in Prepaid Rent was the amount paid on June 1 for the first 5 months' rent.

Supplies on hand at June 30 were $825.

The equipment, purchased June 1, has an estimated life of 6 years.

Unpaid wages at June 30 were $200.

Utility services used during June were estimated at $290. A bill is expected early in July.

Fees earned for services performed but not yet billed on June 30 were $370. The firm uses the account Fees Receivable to reflect amounts due but not yet billed.

Required
Prepare the adjusting entries needed at June 30 for the general journal.

Answer rating: 100% (QA)

Adjusting entries 1 Rent expense 620 31005 Prepaid rent 620 2 ... View the full answer