The trial balance for Prima Consultants Company on December 31, 2010, appears below. The following information is also available:

a. Ending inventory of office supplies, $97

b. Prepaid rent expired, $500

c. Depreciation of office equipment for the period, $720

d. Interest accrued on the note payable, $600

e. Salaries accrued at the end of the period, $230

f. Service revenue still unearned at the end of the period, $1,410

g. Service revenue earned but not billed, $915

Required

1. Open T accounts for the accounts in the trial balance plus the following interest Payable; Salaries Payable; Office Supplies Expense; Depreciation Expense-Office Equipment; and Interest Expense. Enter the account balances.

2. Determine the adjusting entries and post them directly to the T account.

3. Prepare an adjusted trial balance.

4. Which financial statements do each of the above adjustments affect? What financial statement is not affected by theadjustments?

Transcribed Image Text:

Prima Consultants Company Trial Balance December 31, 2010 Cash Accounts Receivable Office Supplies Prepaid Rent Office Equipment Accumulated Depreciation-Office 13,786 24,B40 991 1,400 7,300 Equipment Accounts Payable Notes Payable Unearned Service Revenue M. Sirot, Capital M. Sirot, Withdrawals Service Revenue Salaries Expense Utilities Expense Rent Expense 2,600 1820 0,000 2860 30,387 15,000 58,500 33,400 1,750 7,700 $106,167 5106,167