This problem continues to Davis consulting situation from problem P2-42 of chapter 2. You will need to use unadjusted trial balance and posted T accounts that you prepared in problem P2-43. The unadjusted trial balance at December 31, 2014 is duplicated below:

Balance

Account title. Debit. Credit

Cash $16400

Accounts Receivable. $1200

Office supplies. 900

Equipment. 1800

Furniture. 4200

Accounts payable. $4700

Unearned revenue. 1400

Davis, capital. 18000

Davis, withdrawal. 1400

Service revenue. 2600

Rent expense. 550

Utilities expense. 250

Total. $26700. $26700

December 31 the business gathers the following information for the adjusted entries

A. Accrued service revenue, $550

B. Earned $700 of the service revenue collected in advance on December 21.

C. Office supplies on hand, $200

D. Depreciation on equipment, $30; depreciation on furniture,$70

E. Accrued $685 expense for administrative assistants salary

Requirements

1. Journalize and posted Justin earnings using the T accounts that you have completed and problem P2 43. In the T accounts, do you know each adjusting amount as Adj. and the account balance as balance

2. Prepare an adjusted trial balance as of December 31, 2014