The trial balance of Silber Insurance Agency at August 31, 2014, appears below.

The data needed for the month-end adjustments appears here.

Adjustment data:

a. Commission revenue received in advance that had not been earned at August 31, $40,500.

b. Rent still prepaid at August 31, $2,300. Hint: Calculate the amount of rent that was used up.

c. Supplies used during the month, $2,040.

d. Amortization on furniture for the month, $2,220.

e. Amortization on building for the month, $2,780.

f. Accrue salary expense at August 31 in the amount of $2,760.

Required

1. Open ledger accounts for the accounts listed in the trial balance and insert their August 31 unadjusted balances. Also open the Income Summary account (account #340). Date the balances of the following accounts as of August 1: Prepaid Rent, Supplies, Furniture, Accumulated Amortization-Furniture, Building, Accumulated Amortization-Building, Unearned Commission Revenue, and C. Silber, Capital.

2. Write the trial balance on a work sheet and complete the work sheet of Silber Insurance Agency for the month ended August 31, 2014.

3. using the completed work sheet, prepare the income statement, the statement of owner's equity, and the classified balance sheet in account format.

4. Using the work-sheet data, journalize and post the adjusting and closing entries, including explanations. Use dates and posting references. Use page 7 as the number of the journal page.

5. Prepare a post closing trial balance.

Transcribed Image Text:

SILBER INSURANCE AGENCY Trial Balance August 31, 2014 Acct. 110 Cash $142,800 120 Accounts receivable 83,360 130 Prepaid rent 7,740 140 Supplies 5,400 92,100 150 Furniture $ 76,800 151 Accumulated amortization-furniture 170 Building 449,400 171 Accumulated amortization-building 161,600 180 Land 80,000 210 Accounts payable 25,440 220 Salaries payable 230 Unearned commission revenue 53,400 300 C. Silber, capital 421,520 330 C. Silber, withdrawals 28,800 400 Commission revenue 163,800 510 Salaries expense 6,600 520 Rent expense 530 Utilities expense 2,460 540 Amortization expense-furniture 550 Amortization expense-building 3,900 560 Advertising expense 570 Supplies expense Total $902,560 $902,560