Furniture Design Ltd was founded in Dec 2018. Furniture Design provides unique and modern designing services to customers.

Below is the Company’s trial balance as of Dec 31, 2018.

Furniture LD
Trial Balance
Account	Dr.	Cr.
Cash	276,300
A/R	1,100
Land	120,000
Building	60,000
Equipment	2,800
A/P		138,000
Unearned Revenue		2,500
Share Capital		320,000
Dividends	2,250
Service Revenue		2,200
Interest Expense	250
Total	462,700	462,700

An Analysis of the transactions shows the following:

1- The Equipment is being depreciated at $600 per quarter. 2- Unearned Revenue balance on Dec 31, 2018 is $1,000.

3. Interest of $200 was accrued on Dec 31, 2018.
4. Services performed but not recorded on Dec, 31 were $600.

1. Prepare Adjusting entries and post them to the related T-Accounts. - Note: The Company prepares its adjusting entries on a monthly basis.
2. 
   
   1. Post into the related T-Accounts. - Note: Use the provided T-Accounts
   2. Prepare the Adjusted Trial Balance as of Dec 31, 2018.
   3. Prepare the Closing entries as of Dec 31, 2018. 
   4. Post to the related T-Accounts (only income summary and Retained Earnings
3. 
   
   5. Prepare a Post-Closing Trial Balance.

Answer rating: 100% (QA)

Answer Solution 1 Adjusting Journal Entries Date Account Titles Debit Credit 31Dec Depreciation Expense Dr 6003 200 To Accumulated Depreciation Cr 200 Being depreciation on the equipment charged for t... View the full answer