The Signage Company specializes in the maintenance and repair of signs, such as
ID: 2412631 • Letter: T
Question
The Signage Company specializes in the maintenance and repair of signs, such as billboards. On March 31, 2016 the accountant for The Signage Company prepared an unadjusted trial balance and an adjusted trial balance.
The Signage Company
UNADJUSTED TRIAL BALANCE
March 31, 2016
1
Cash
4,750.00
2
Accounts Receivable
17,400.00
3
Supplies
6,200.00
4
Prepaid Insurance
9,000.00
5
Land
100,000.00
6
Buildings
170,000.00
7
Accumulated Depreciation-Buildings
51,500.00
8
Trucks
75,000.00
9
Accumulated Depreciation-Trucks
12,000.00
10
Accounts Payable
6,920.00
11
Salaries Payable
12
Unearned Service Fees
10,500.00
13
Al Bosch, Capital
256,400.00
14
Al Bosch, Drawing
7,500.00
15
Service Fees Earned
162,680.00
16
Salaries Expense
80,000.00
17
Depreciation Expense-Trucks
18
Rent Expense
11,900.00
19
Supplies Expense
20
Utilities Expense
6,200.00
21
Depreciation Expense-Buildings
22
Taxes Expense
2,900.00
23
Insurance Expense
24
Miscellaneous Expense
9,150.00
25
Totals
500,000.00
500,000.00
Compare the unadjusted trial balance to the adjusted trial balance. Journalize the seven entries that adjusted the accounts at March 31. None of the accounts were affected by more than one adjusting entry. Refer to the Chart of Accounts for exact wording of account titles.
Adjusted Trial Balance
The Signage Company
ADJUSTED TRIAL BALANCE
March 31, 2016
1
Cash
4,750.00
2
Accounts Receivable
17,400.00
3
Supplies
2,175.00
4
Prepaid Insurance
1,150.00
5
Land
100,000.00
6
Buildings
170,000.00
7
Accumulated Depreciation-Buildings
61,000.00
8
Trucks
75,000.00
9
Accumulated Depreciation-Trucks
17,000.00
10
Accounts Payable
8,750.00
11
Salaries Payable
1,400.00
12
Unearned Service Fees
3,850.00
13
Al Bosch, Capital
256,400.00
14
Al Bosch, Drawing
7,500.00
15
Service Fees Earned
169,330.00
16
Salaries Expense
81,400.00
17
Depreciation Expense-Trucks
5,000.00
18
Rent Expense
11,900.00
19
Supplies Expense
4,025.00
20
Utilities Expense
8,030.00
21
Depreciation Expense-Buildings
9,500.00
22
Taxes Expense
2,900.00
23
Insurance Expense
7,850.00
24
Miscellaneous Expense
9,150.00
25
Totals
517,730.00
517,730.00
Chart of Accounts
ACCOUNT TITLE DEBIT CREDIT1
Cash
4,750.00
2
Accounts Receivable
17,400.00
3
Supplies
6,200.00
4
Prepaid Insurance
9,000.00
5
Land
100,000.00
6
Buildings
170,000.00
7
Accumulated Depreciation-Buildings
51,500.00
8
Trucks
75,000.00
9
Accumulated Depreciation-Trucks
12,000.00
10
Accounts Payable
6,920.00
11
Salaries Payable
12
Unearned Service Fees
10,500.00
13
Al Bosch, Capital
256,400.00
14
Al Bosch, Drawing
7,500.00
15
Service Fees Earned
162,680.00
16
Salaries Expense
80,000.00
17
Depreciation Expense-Trucks
18
Rent Expense
11,900.00
19
Supplies Expense
20
Utilities Expense
6,200.00
21
Depreciation Expense-Buildings
22
Taxes Expense
2,900.00
23
Insurance Expense
24
Miscellaneous Expense
9,150.00
25
Totals
500,000.00
500,000.00
Explanation / Answer
Answer: Adjustment entries on March 31, 2016
Date
Accounts Titles and Explanations
Debit
Credit
Mar. 31
Supplies Expense
4025
Supplies (6200 - 2175)
4025
(To record supplies used )
Mar. 31
Insurance Expense
7850
Prepaid Insurance (9000 - 1150)
7850
(To record insurance expired)
Mar. 31
Depreciation Expense
9500
Accumulated Deprecition - Building (61000 - 51500)
9500
(To record deprecition on building)
Mar. 31
Depreciation Expense
5000
Accumulated Depreciation - Truck (17000 - 12000)
5000
(To record depreciation on trucks)
Mar. 31
Utilities Expense
1830
Accounts Payable (8750 - 6920)
1830
(To record accrued utilities expense)
Mar. 31
Salary Expense
1400
Salaries Payable
1400
(To record accrued salary expense)
Mar. 31
Unearned Service Revenue (10,500 - 3850)
6650
Service Fees Earned
6650
(To record service fees earned)
PLEASE, Rate the solution if it's helpful to you ...
Date
Accounts Titles and Explanations
Debit
Credit
Mar. 31
Supplies Expense
4025
Supplies (6200 - 2175)
4025
(To record supplies used )
Mar. 31
Insurance Expense
7850
Prepaid Insurance (9000 - 1150)
7850
(To record insurance expired)
Mar. 31
Depreciation Expense
9500
Accumulated Deprecition - Building (61000 - 51500)
9500
(To record deprecition on building)
Mar. 31
Depreciation Expense
5000
Accumulated Depreciation - Truck (17000 - 12000)
5000
(To record depreciation on trucks)
Mar. 31
Utilities Expense
1830
Accounts Payable (8750 - 6920)
1830
(To record accrued utilities expense)
Mar. 31
Salary Expense
1400
Salaries Payable
1400
(To record accrued salary expense)
Mar. 31
Unearned Service Revenue (10,500 - 3850)
6650
Service Fees Earned
6650
(To record service fees earned)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.