On July 31, 2019, after one month of operation, the general ledger of Dakota Consulting contained the following accounts and balances. The firm adjusts losses from uncollectible accounts only at the end of the fiscal year. Monthly adjustments are listed below. 

ACCOUNTS BALANCE Cash $ 13,185 Dr. 

Accounts Receivable 9,500 Dr. 

Allowance for Doubtful Accounts 125 Cr. 

Supplies 650 Dr. 

Prepaid Rent 3,000 Dr. 

Prepaid Interest 240 Dr. 

Office Equipment 14,500 Dr. 

Accumulated Depreciation−Office Equipment − Notes Payable 14,000 Cr. 

Accounts Payable 700 Cr. 

Interest Payable − Unearned Income 600 Cr. 

Kay Dakota, Capital 22,800 Cr. 

Kay Dakota, Drawing 2,600 Dr. 

Fees Income 16,500 Cr. 

Salaries Expense 11,050 Dr.

 Supplies Expense − Rent Expense − Depreciation Expense−Office Equipment − Interest Expense − Adjustments: 

(a) On July 31, an inventory of the supplies showed that items costing $250 were on hand. 

(b) On July 1, the firm paid $3,000 in advance for 6 months rent. 

(c) On July 1, the firm paid $240 interest in advance on a 3-month note that it issued to the bank. 

(d) On July 2, the firm purchased office equipment for $14,500. The office equipment is expected to have a useful life of 5 years and a salvage value of $1,000. 

(e) On July 1, the firm issued a 3-month, 9 percent note for $4,000. 

(f) During July, the firm received $600 from customers in advance of providing services. An analysis of the firm’s records shows that the full amount applies to services provided in July. 

Prepare the Trial Balance, Adjustments, and Adjusted Trial Balance sections of a worksheet.

Answer rating: 100% (QA)

Dakota Consulting Work sheet Month ended July 31 2019 Trail Balance Adjustments Ad... View the full answer