Chapter 3, Problem 50BP

Preparing adjusting journal entries and an adjusted trial balance (Learning Objectives 2 & 3) 25-30 min.

The trial balance of A-1 Web Design, Inc., at June 30, 2018, and the data needed for the month-end adjustments follow:

A-1 Web Design, Inc. Trial Balance June 30, 2018
		ACCOUNT	DEBIT	CREDIT
		Cash	$ 11,700
		Accounts Receivable	2,650
		Prepaid Insurance	2,300
		Supplies	1,500
		Equipment	35,500
		Accumulated Depreciation, Equipment		$ 7,900
		Accounts Payable		1,850
		Salaries Payable
		Unearned Service Revenue		3,000
		Common Stock		25,000
		Retained Earnings		6,600
		Dividends	2,800
		Service Revenue		15,700
		Salaries Expense	3,600
		Insurance Expense
		Depreciation Expense, Equipment
		Utilities Expense
		Supplies Expense
		Total	$ 60,050	$ 60,050

1. a. Insurance coverage still remaining at June 30, $575
2. b. Supplies used during the month, $875
3. c. Depreciation for the month, $1,650
4. d. Accrued utilities expense at June 30, $235 (use Accounts Payable as the liability account needed)
5. e. Accrued salaries at June 30, $450
6. f. Service revenue still unearned at June 30, $1,900

Requirements

1. 1. Open T-accounts for the accounts listed in the trial balance and insert their June 30 unadjusted balances.
2. 2. Journalize the adjusting entries and post them to the T-accounts. Reference the posted amounts by letters (a) through (f). Calculate the adjusted balance in each account.
3. 3. Prepare the adjusted trial balance at June 30, 2018.
4. 4. How will the company use the adjusted trial balance?