beginner accounting course problem Adjustment information: Office supplies count

Question

beginner accounting course problem

Adjustment information: Office supplies counted at the end of 2014 amounted to S9,200. During 2014, $10,800 of prepaid insurance was used up. Depreciation expense on the equipment was determined to be $24,800 for 2014. Unearned service revenue on December 31, 2014 was determined to be $13,600. Employees earned salaries of S6,600 at December 31, 2014, but they had not yet been paid. Prepare the adjusting entries needed to correctly state the accounts at December 31,2014. Prepare an adjusted trial balance for the year ended December 31, 2014. Prepare the closing entries required to prepare the accounts for 2014. Prepare the post-closing trial balance.

Explanation / Answer

1). Adjusting entries

2). Adjusted trial balance

DEC 31,2014

3). Closing entries

4). Post Trial Balance

DEC 31,2014

Account name debit Credit a. Supplies expense
Office supplies(19000-9200)
(To adjust office supplies) 9800

9800 b. Insurance expense
Prepaid insurance
( To adjust the prepaid insurance) 10800

10800 C. Depreciation expense
Accumulated depreciation
To adjust the Depreciation) 24800

24800 d. Unearned revenue
Service revenue (41200-13600)
(To adjust unearned revenue) e. Salaries expense
Accrued expenses
(To adjust the accrued salaries expenses) 6600

6600

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