This was the unadjusted trial balance for Certified Answering Service on December 31, 19x2:

The following information is also available:

a. Insurance that expired during December amounted to $40.

b. Office supplies on hand at the end of December totaled $75.

c. Depreciation for the month of December totaled $100.

d. Accrued wages at the end of December totaled $120.

e. Revenues earned for services performed but not yet billed on December 31 totaled $300.

f. Revenues earned for services performed that were paid in advance totaled $160.

Required

1. Prepare T accounts for the accounts in the trial balance and enter the balances.
2. Determine the required adjusting entries and record them directly in the T accounts. Open new T accounts as needed.
3. Prepare an adjusted trial balance.
4. Prepare an income statement, statement of owner’s equity, and a balance sheet for the month ended December 31, 19x2. Assume that James Neal made no new investments during the month.

 

Transcribed Image Text:

Cash Accounts Receivable Office Supplies Prepaid Insurance Office Equipment Certified Answering Service Trial Balance December 31, 19x2 Accumulated Depreciation, Office Equipment Accounts Payable Unearned Revenue James Neal, Capital James Neal, Withdrawals Answering Service Revenue Wages Expense Rent Expense $2,160 1,250 180 240 3,400 400 1,500 400 $9,530 $ 600 700 460 4,870 2,900 $9,530 Cash Accounts Receivable Office Supplies Prepaid Insurance Office Equipment Certified Answering Service Trial Balance December 31, 19x2 Accumulated Depreciation, Office Equipment Accounts Payable Unearned Revenue James Neal, Capital James Neal, Withdrawals Answering Service Revenue Wages Expense Rent Expense $2,160 1,250 180 240 3,400 400 1,500 400 $9,530 $ 600 700 460 4,870 2,900 $9,530

Answer rating: 100% (QA)

Answer 1 T accounts Cash 2160 Accounts Receivable 1250 Office Supplies 180 Prepaid Insurance 240 Off... View the full answer