Following is the unadjusted trial balance of Blazer Gadgets at the end of its first year of operations, December 31, 2021
Account			Balance
Number	Account		Debit	Credit
101	Cash		6,300
110	Accounts Receivable		5,000
161	Prepaid Insurance		2,000
173	Unused Supplies		600
184	Truck		10,000
194	Acc. Dep-truck			-
210	accounts payable			7,200
226	salaries payable			-
248	unearned rent revenue			300
260	income taxes payable			-
320	share capital		-	10,000
350	dividends		1,500
410	commissions earned			20,000
440	rent earned
610	advertising expense		100
615	commisions expense		1,500
624	Dep exp - Truck		-
631	insurance expense		-
632	interest expense		500
654	rent expense		3,500
656	salaires expense		6,000
668	supplies expense
669	telephone expense		500
830	income tax epense		-
			37,500	37,500
The following additional information is available:
a.	Prepaid insurance at December 31 amounts to $1,000.
b.	A physical count indicates that $200 of supplies is still
	on hand at December 31
c.	The truck was purchased on July 1; it has an estimated
	useful lilfe of 5 years.
d.	One day of salaries for December 31 is unpaid; the
	unpaid amount of $500 will be included in the first
	Friday payment in January.
e.	The balance in the Unearned Rent Revenue account
	represents six months rental of office space, effective
	November 1st
f.	A $350 bill for December telephone charges has not
	yet been recorded.
g.	Income taxes expense for theyear is $500. This
	amount will be paid next year.
Required:
1	Prepare all necessary adjusting entries at December 31, 2021, including general ledger account numbers.
2	Prepare an adjusted trial balance at December 31, 2021.

Answer rating: 100% (QA)

To prepare the necessary adjusting entries at December 31 2021 we need to consider the additional information provided Here are the adjusting entries ... View the full answer