This problem continues the Davis Consulting situation from Problem P2-43. You will need to use the 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:

At December 31, the business gathers the following information for the adjusting 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 assistant’s salary.

Requirements
1. Journalize and post the adjusting entries using the T-accounts that you completed in Problem P2- 43. In the T-accounts, denote each adjusting amount as Adj. and an account balance as Balance.
2. Prepare an adjusted trial balance as of December 31,2014.

Transcribed Image Text:

DAVIS CONSULTING Unadjusted Trial Balance December 31, 2014 Balance Debit 16.400 1,200 900 1,800 4,200 Credit Account Title Cash Accounts Raceivabie Office Supplies Equipment Furniture Accounts Payable Unearned Revenue Common Stock Dividends Service Revenue Rent Experse Ubilities Expense Total 4,700 1,400 18,000 1,400 2,600 550 250 S 26,700 $26,700