I don\'t know to solve this and the textbook Horngren\'s Accounting. The Financi
ID: 2492507 • Letter: I
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I don't know to solve this and the textbook Horngren's Accounting. The Financial Chapters (11th Edition) isn't really helping. P3-36A Journalizing and posting adjustments to the four-column accounts and preparing an adjusted trial balance The unadjusted trial balance of Newport Inn Company at December 31, 2016, and the data needed for the adjustments follow NEWPORT INN COMPANY Unadjusted Trial Balance December 31, 2016 Balance Account Title Cash Accounts Receivable Prepaid Insurance Office Supplies Building Accumulated Depreciation-Building Accounts Payable Salaries Payable Unearned Revenue Coffey, Capital Coffey, Withdrawals Service Revenue Salaries Expense Insurance Expense Depreciation Expense-Building Advertising Expense Supplies Expense Total Debit Credit 11,900 13,900 3,500 1,100 515,000 350,000 4,500 2,500 175,620 2,170 18,200 2,500 750 $ 550,820 $550,820 5550 820. $550,820Explanation / Answer
a.
Date
Account titles and explanation
Debit
Credit
December 31,2016
Insurance Expense
$2,900
Prepaid insurance ($3,500 - $600)
$2,900
December 31,2016
Supplies expense
$400
Office Supplies ($1,100 - $700)
$400
December 31,2016
Depreciation expense - Building
$3,500
Accumulated Depreciation - Building
$3,500
December 31,2016
Salaries Expense
$900
Salaries Payable ($1,500 * 3 days/5 days)
$900
December 31,2016
Unearned Revenue ($2,500 - $1,500)
$1,000
Service revenue
$1,000
b.
Prepaid Insurance
Service revenue
Balance
$3,500
December 31,2016
$2,900
Balance
$18,200
December 31,2016
$1,000
December 31,2016 Balance
$600
December 31,2016 Balance
$19,200
Office Supplies
Salaries expense
Balance
$1,100
December 31,2016
$700
Balance
$2,500
December 31,2016
$900
December 31,2016 Balance
$400
December 31,2016 Balance
$3,400
Accumulated Depreciation - Building
Insurance expense
Balance
$350,000
Balance
$0
December 31,2016
$3,500
December 31,2016
$2,900
December 31,2016 Balance
$353,500
December 31,2016 Balance
$2,900
Salaries payable
Depreciation Expense - Building
Balance
$0
Balance
$0
December 31,2016
$900
December 31,2016
$3,500
December 31,2016 Balance
$900
December 31,2016 Balance
$3,500
Unearned revenue
Supplies expense
December 31,2016
$1,000
Balance
$2,500
Balance
$0
December 31,2016
$400
December 31,2016 Balance
$1,500
December 31,2016 Balance
$400
c.
NEWPORT INN COMPANY
Adjusted Trial Balance
December 31,2016
Account title
Balance
Debit
Credit
Cash
$11,900
Accounts Receivable
$13,900
Prepaid Insurance
$600
Office Supplies
$700
Building
$515,000
Accumulated Depreciation - Building
$353,500
Accounts Payable
$4,500
Salaries Payable
$900
Unearned Revenue
$1,500
Coffey, Capital
$175,620
Coffey, Drawings
$2,170
Service Revenue
$19,200
Salaries Expense
$3,400
Insurance Expense
$2,900
Depreciation Expense - Building
$3,500
Advertising Expense
$750
Supplies expense
$400
Total
$555,220
$555,220
Date
Account titles and explanation
Debit
Credit
December 31,2016
Insurance Expense
$2,900
Prepaid insurance ($3,500 - $600)
$2,900
December 31,2016
Supplies expense
$400
Office Supplies ($1,100 - $700)
$400
December 31,2016
Depreciation expense - Building
$3,500
Accumulated Depreciation - Building
$3,500
December 31,2016
Salaries Expense
$900
Salaries Payable ($1,500 * 3 days/5 days)
$900
December 31,2016
Unearned Revenue ($2,500 - $1,500)
$1,000
Service revenue
$1,000
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