Chapter 3: E3, E11, and P3 P 3. The trial balance for Prima Consultants Company

ID: 2388005 • Letter: C

Question

Chapter 3: E3, E11, and P3
P 3. 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 accounts.
3. Prepare an adjusted trial balance.
4. Which financial statements do each of the above adjustments affect? What
financial statement is not affected by the adjustments?
LO3 LO4
Prima Consultants Company
Trial Balance
December 31, 2010
Cash $ 13,786
Accounts Receivable 24,840
Offi ce Supplies 991
Prepaid Rent 1,400
Offi ce Equipment 7,300
Accumulated Depreciation–Offi ce
Equipment $ 2,600
Accounts Payable 1,820
Notes Payable 10,000
Unearned Service Revenue 2,860
M. Sirot, Capital 30,387
M. Sirot, Withdrawals 15,000
Service Revenue 58,500
Salaries Expense 33,400
Utilities Expense 1,750
Rent Expense 7,700
$106,167 $106,167

Explanation / Answer

Cash

$ 13,786

Accounts Receivable

24,840

Supplies

991

Prepaid Rent

1,400

Of ce Equipment

7,300

Accumulated Depreciation–Of ceEquipm

ent

2,600

Accounts Payable

1,820

Notes Payable

10,000

UnearnedService

2860

Revenue

2,860M.

Service revenue

30,387M.

Sirot, Capital

15,000

Sirot, Withdrawals

58500

Service Revenue

Salaries Expense

33,400

Utilities Expense

1,750

Rent Expense

7,700$

106,167

106167