*** No adjusting entry provided in the question or prior ***

Prepare the appropriate adjusting entries on August 31, 2014. HINT: Where might you look to find information to prepare the adjusting entries?

General ledger:

Unadjusted trial balance:

a) Prepare the appropriate adjusting entries on August 31, 2014. HINT: Where might you look to find information to prepare the adjusting entries? NOTE: The adjusting entries will be automatically posted to the general ledger when you click 'submit' and the correct adjusted general ledger balances will be available in the solution to Part 4. General Journal Page GJ5 Date Account/Explanation Debit Credit 31/Aug Depreciation Expense, Furniture 1,500 Accumulated Depreciation, Furniture... 1,500 a 31/Aug Prepaid Rent 800 Rent Expense... 800 b 31/Aug Salaries Expense... 3,250 Salaries Payable 3,250 C 27,500 31/Aug Unearned Consulting Revenue Consulting Revenue Earned 27,500 d 31/Aug Depreciation Expense, Equipment 1,920 Accumulated Depreciation, Equipment 1,920 e Note that any incorrect entries are highlighted red, but there may also be some entries missing. Date 1/Aug Prepaid for rent Date 31/Jul Opening balance Date 31/Jul Opening balance Date 2/Aug Received equipment Date 31/Jul Opening balance 2/Aug 13/Aug 25/Aug 31/Aug Paid bill for utilities expense Prepaid Rent Explanation Furniture Explanation Accumulated Depreciation, Furniture Explanation Equipment Explanation Accounts Payable Explanation Received equipment. Paid invoice for equipment. Received bill for utilities expense F GJ1 F F Debit 9,600 Debit Debit F Debit GJ1 19,200 F Debit GJ1 GJ2 19,200 GJ3 GJ3 900 Account No. 131 Credit Balance 9,600 Account No. 161 Credit Balance 7,500 Account No. 162 Credit Balance 4,000 Account No. 167 Credit Balance 19,200 Account No. 201 Credit Balance 40,000 19,200 59,200 40,000 900 40,900 40,000 Unearned Consulting Revenue Explanation Date 3/Aug Date 31/Jul Opening balance 1/Aug Issued shares Date 31/Aug Dividends Date 31/Jul Date 15/Aug 20/Aug 22/Aug Date 25/Aug Paid cash for salaries Received payment for consulting in advance Share Capital Explanation Dividends Explanation Retained Earnings Explanation Consulting Revenue Earned Explanation Opening balance Earned consulting revenue Earned and received consulting revenue Earned consulting revenue Salaries Expense Explanation F Debit GJ1 F Debit GJ1 F Debit GJ4 6,720 F Debit Debit F GJ2 GJ2 GJ3 F Debit GJ3 11,050 Account No. 230 Credit Balance 7,600 7,600 Account No. 301 Credit Balance 61,500 25,000 86,500 Account No. 302 Credit Balance 6,720 Account No. 318 Credit Balance 86,500 Account No. 403 Credit Balance 10,560 10,560 220 10,780 16,720 27,500 Account No. 622 Credit Balance 11,050 Food and Drinks Expense Explanation Repair Expense Explanation Utilities Expense Explanation Date 4/Aug Paid for dinner with client 9/Aug Paid for dinner with client Date 18/Aug Paid for repairs to furniture Date 25/Aug Received bill for utilities expense F Debit GJ1 60 GJ2 51 F Debit GJ2 900 Debit GJ3 900 Account No. 668 Credit Balance 60 111 Account No. 684 Credit Balance 900 Account No. 690 Credit Balance 900 Initech Inc. Unadjusted Trial Balance August 31, 2014 Cash Accounts Receivable Prepaid Rent Furniture Accumulated Depreciation, Furniture Equipment... Accounts Payable. Unearned Consulting Revenue Share Capital Dividends Retained Earnings Consulting Revenue Earned Salaries Expense Food and Drinks Expense Repair Expense Utilities Expense Totals Debit Credit 153,059 43,060 9,600 7,500 4,000 19,200 40,000 7,600 86,500 6,720 86,500 27,500 11,050 111 900 900 252,100 252,100 a) Prepare the appropriate adjusting entries on August 31, 2014. HINT: Where might you look to find information to prepare the adjusting entries? NOTE: The adjusting entries will be automatically posted to the general ledger when you click 'submit' and the correct adjusted general ledger balances will be available in the solution to Part 4. General Journal Page GJ5 Date Account/Explanation Debit Credit 31/Aug Depreciation Expense, Furniture 1,500 Accumulated Depreciation, Furniture... 1,500 a 31/Aug Prepaid Rent 800 Rent Expense... 800 b 31/Aug Salaries Expense... 3,250 Salaries Payable 3,250 C 27,500 31/Aug Unearned Consulting Revenue Consulting Revenue Earned 27,500 d 31/Aug Depreciation Expense, Equipment 1,920 Accumulated Depreciation, Equipment 1,920 e Note that any incorrect entries are highlighted red, but there may also be some entries missing. Date 1/Aug Prepaid for rent Date 31/Jul Opening balance Date 31/Jul Opening balance Date 2/Aug Received equipment Date 31/Jul Opening balance 2/Aug 13/Aug 25/Aug 31/Aug Paid bill for utilities expense Prepaid Rent Explanation Furniture Explanation Accumulated Depreciation, Furniture Explanation Equipment Explanation Accounts Payable Explanation Received equipment. Paid invoice for equipment. Received bill for utilities expense F GJ1 F F Debit 9,600 Debit Debit F Debit GJ1 19,200 F Debit GJ1 GJ2 19,200 GJ3 GJ3 900 Account No. 131 Credit Balance 9,600 Account No. 161 Credit Balance 7,500 Account No. 162 Credit Balance 4,000 Account No. 167 Credit Balance 19,200 Account No. 201 Credit Balance 40,000 19,200 59,200 40,000 900 40,900 40,000 Unearned Consulting Revenue Explanation Date 3/Aug Date 31/Jul Opening balance 1/Aug Issued shares Date 31/Aug Dividends Date 31/Jul Date 15/Aug 20/Aug 22/Aug Date 25/Aug Paid cash for salaries Received payment for consulting in advance Share Capital Explanation Dividends Explanation Retained Earnings Explanation Consulting Revenue Earned Explanation Opening balance Earned consulting revenue Earned and received consulting revenue Earned consulting revenue Salaries Expense Explanation F Debit GJ1 F Debit GJ1 F Debit GJ4 6,720 F Debit Debit F GJ2 GJ2 GJ3 F Debit GJ3 11,050 Account No. 230 Credit Balance 7,600 7,600 Account No. 301 Credit Balance 61,500 25,000 86,500 Account No. 302 Credit Balance 6,720 Account No. 318 Credit Balance 86,500 Account No. 403 Credit Balance 10,560 10,560 220 10,780 16,720 27,500 Account No. 622 Credit Balance 11,050 Food and Drinks Expense Explanation Repair Expense Explanation Utilities Expense Explanation Date 4/Aug Paid for dinner with client 9/Aug Paid for dinner with client Date 18/Aug Paid for repairs to furniture Date 25/Aug Received bill for utilities expense F Debit GJ1 60 GJ2 51 F Debit GJ2 900 Debit GJ3 900 Account No. 668 Credit Balance 60 111 Account No. 684 Credit Balance 900 Account No. 690 Credit Balance 900 Initech Inc. Unadjusted Trial Balance August 31, 2014 Cash Accounts Receivable Prepaid Rent Furniture Accumulated Depreciation, Furniture Equipment... Accounts Payable. Unearned Consulting Revenue Share Capital Dividends Retained Earnings Consulting Revenue Earned Salaries Expense Food and Drinks Expense Repair Expense Utilities Expense Totals Debit Credit 153,059 43,060 9,600 7,500 4,000 19,200 40,000 7,600 86,500 6,720 86,500 27,500 11,050 111 900 900 252,100 252,100