Using the Myla’s Motors accounts and their balances at the end of month (November 30, 2020) create a Trial Balance for the period.

Equipment	53,500	Myla, capital	19,700
Accounts payable	13,400	Supplies	500
Unearned service revenue	8,000	Insurance expense	0
Salary expense	1,600	Supplies expense	0
Accounts Receivable	26,600	Service revenue	16,000
Depreciation expense	0	Salary payable	0
Cash	4,300	Prepaid Insurance	1,700
Myla, drawing	3,800	Accumulated depreciation	36,400
Utilities expense	1,500

Requirements:

1. Expand the worksheet by introducing following adjustments:

Depreciation on equipment, $1,100.

Accrued salary expense, $600.

Supplies on hand, $200

Prepaid insurance expired during November, $200.

Unearned service revenue earned during November, $4,000.

Accrued service revenue, $800.

1. Journalize all adjustments and post them to the ledger.
2. Create the Adjusted trial balance.
3. What is the net income of Myla’s Motors for the given period?
4. What accounting principles relate to the adjustments and how?

Answer rating: 100% (QA)

Step 1 Journalize all adjustments S No Entry Dr Cr Amount Dr Amount Cr 1 Depreciation Expenses Dr 1100 To Accumulated Depreciation Cr 1100 Being depreciation recorded 2 Salary Expenses Dr 600 To Salar... View the full answer