salaries expense dividends totals 1700 350 43800 43800 Additional Information: i
ID: 2525084 • Letter: S
Question
salaries expense
dividends
totals
1700
350
43800
43800
Additional Information:
i Rent expires (is used up) at a rate of $700 per month.
ii Monthly depreciation on equipment is $300.
iii Interest on the 6 per cent promissory note is paid quarterly on
1 April, 1 July, 1 October and 1 January.
iv Performed services for which payment was received in April– $800.
v Received electricity bill to be paid next month – $500.
vi Services to customers earned during June but unrecorded at 30 June, $2500
. vii Supplies on hand totaled $1500 at 30 June. viii Owed employees for salaries for the last week of June to be
paid in July – $800
. ix Prime Realty prepares adjusting entries each quarter adjustments were last made on 31 march
Required
a Prepare all adjusting journal entries for the quarter ending 30 June.
b Post journal entries to T-accounts using totals on the unadjusted trial balance as the opening balances
c Prepare an adjusted trial balance as of 30 June
debit credit cash 6900 accounts receivable 4500 prepaid rent 6300 supplies 2250 equipment 18000 accumulated depreciation 900 unearned revenue 1500 notes payable 10 000 contributed capital 8000 retained earnings, 1 april 12200 service revenue 11200 advertising expense 650 depreciation expense 900 interest expense 150 rent expense 2100salaries expense
dividends
totals
1700
350
43800
43800
Explanation / Answer
a. Account Title Debit Credit i Rent Expense 2100 Prepaid rent 2100 $ 700*3 --rent for Apr-Jun qtr. ii Depreciation expense 900 Accumulated depreciation 900 $ 300*3 mths. iii Interest Expense 150 Interest Payable 150 Apr-Jun Qtr. iv. Unearned Revenue 800 Services Revenue 800 v Utilities expense 500 Utilities payable 500 vi Accounts receivable 2500 Service revenue 2500 vii Supplies Expense 750 Supplies 750 (2250-1500) viii Salaries expense 800 Salaries payable 800 8500 8500 LEDGER ACCOUNTS Net Ledger Balances a. Account Title Debit Credit Debit Credit vi Accounts receivable 2500 2500 ii Accumulated depreciation 900 900 ii Depreciation expense 900 900 iii Interest Expense 150 150 iii Interest Payable 150 150 i Prepaid rent 2100 2100 i Rent Expense 2100 2100 viii Salaries payable 800 800 viii Salaries expense 800 800 vi Service revenue 2500 iv. Services Revenue 800 3300 vii Supplies 750 750 vii Supplies Expense 750 750 iv. Unearned Revenue 800 800 v Utilities expense 500 500 v Utilities payable 500 500 8500 8500 8500 8500 TRIAL BALANCE Unadjusted Adjustments Adjusted T/B As at 30 th June Debit Credit Debit Credit Debit Credit Cash 6900 6900 Accounts receivable 4500 2500 7000 Prepaid rent 6300 -2100 4200 Supplies 2250 -750 1500 Equipment 18000 18000 Accumulated depreciation 900 900 1800 Unearned revenue 1500 -800 700 Salaries payable 800 800 Utilities payable 500 500 Interest Payable 150 150 Notes payable 10000 10000 Contributed capital 8000 8000 Retained earnings, 1 April 12200 12200 Service revenue 11200 3300 14500 Advertising expense 650 650 Depreciation expense 900 900 1800 Supplies Expense 750 750 Utilities expense 500 500 Interest expense 150 150 300 Rent expense 2100 2100 4200 Salaries expense 1700 800 2500 Dividends 350 350 Totals 43800 43800 4850 4850 48650 48650
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