General Ledger Ref Date Account Description 1 Dec-31 Debit Receivables Account Credit Sales Account/Service Revenue Account (being sales entry to be passed as revenue is accured in this period) Note- Assumed that accounts are prepared on Accural basis 2 Dec-31 Debit Prepaid Insurance Account Credit Insurance Account Dr Cr 3323 3323 XXXX (being the amount for 3 month insurance belongs to next period) Note- Insurance amount is not given in question. Let suppose S1200 for the year was paid so the amount which to be debited in prepaid account would be S300 408 408 1280 3 Dec-31 Debit Stock Account Credit Trading Account (Being Adjustment Entry for Closing Stock is passed) 4 Dec-31 Debit Depreciation Account Credit Furniture Account (Being Depreciation charged on Furniture) Note- Furniture cost is not given. Let assume furniture was purchased at $10000 then depreciation would be S1000 for whole year and 83.33 for Dee Month 5 Dec-31 Debit Salary Account 1280 Credit Outstanding Salary Account (being 4 days salary charged in this current period as this expense is related to this period) Note- It is assumed that they were paid upto 27 Dec) 6 Dec-31 Debit Interest Accured Account Credit Interest Account (being Two month interest has been accured) Note- The amount of loan is not given in question. Let suppose the amount was $1200 then Interest of 2 month would be 1200x5/100x2/12 = SIO 7 Dec-31 Debit Service Revenue Account 11866 Credit Service Revenue Received in Advance Account 11866 (Being 3 month Revenue belongs to next period) XXXX 226 8 Dec-31 Debit Utility Expenses Credit Outstanding Utility Expenses (being utility expenses was in the month of December) 226 A 2 Account Name D E 5 Unadjusted Trial Balance at December 31, 2021 Debit Credit 24,200 38,500 15,963 Adjustments Required for Year End Debit Ref Credit Adjusted Trial Balance for December 31, 2021 Debit Credit S Ref 72,000 13,800 18,400 Cash 7 Accounts receivable 8 Note receivable 9 Interest receivable 10 Supplies 11 Prepaid insurance 12 Furniture 11 Accumulated depreciation-furniture 14 Accounts payable 15 Salaries payable 16. Unearned revenue 17 K. Smeltz. capital 18 K. Smeltz withdrawals 19 Consulting revenue 20 Interest revenue 21 Salaries expense 22 Rent expense 23 Insurance expense 24 Utilities expense 2 Depreciation expense 26 Supplies expense 27 Totals 28 78.776 46,000 167,088 375 32,000 33,000 4,413 2,400 6,600 3,363 278 439 $ 278.439 Format Painter le > E33 Clipboard Font Alignment A37 A B C D G 1 3 Denmark Consulting December 31, 2021 Year-End 27 28 Important Information: 29 This company uses the alternative form of adjusting entries. 30 1. The company has completed consulting services as of December 31, 2021 that was not billed until January 16, 2022. The customer paid the invoice on January 31, 2022 31 32 The amount of services completed as of Dec 31st: $ 3,323 33 2. The insurance account represents a one-year insurance policy. The 34 policy was purchased on April 1, 2021. 35 36 3. Supplies on hand as of December 31, 2021 was: $ 408 37 4. The furniture has an estimate useful life of 10 years. Once fully depreciated, it will have no value at the end of the 10 years. Straight-line amortization is used. Depreciation is recorded on a monthly basis on 38 the last day of each month. 39 5. Salaries are paid every two weeks worked. The work week is Monday to Friday, December 31, 2021 ended on Friday, and the workers were last paid on Monday December 27th for the last two weeks prior. 40 41 Salaries were paid on January 10, 2022 in the amount of: $ 3,200 B D 41 Salaries were paid on January 10, 2022 in the amount of: $ 3,200 42 6. On May 1, 2021 the company sold their equipment to a customer, and in exchange, the company agreed to receive a the 9-month note receivable shown on the Trial Balance. The customer pays interest every three months for the past three months (Aug 1st, Nov 1st, Feb 1st). 43 44 The interest rate on the note is: 5% 45 7. The company attracted a new customer for 2022. Denmark Consulting is working on a 6-month consulting project for this new customer that began on October 1, 2021. The customer paid the contract in advance for the entire six months. The contract revenue by month will be earned evenly over the 6-month period. 46 The value of the 6-month consulting contract is: $ 23,732 47 48 8. The company received the utility bill for the month of December 2021 on January 11, 2022. This utility bill was paid on January 22, 2022. 49 50 Utility bill amount $ 226