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20 10 2007

Accounting Test Question No 1 on Adjusted Trial Balance

Posted by: slang in Adjusted Trial Balance
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The following is the unadjusted accounts of ABC Co as at 31 December 2006 :

Account

$

Account receivables

65,450

Office supplies

5,400

Prepaid utilities

10,860
      Prepaid insurance          8,400
      Office equipment        14,680
 Accumulated depreciation-office  equipment          4,400
Unearned revenue        29,850
Capital        77,800
Service revenue        40,680
Salaries expense        18,000
Miscellaneous expense          9,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All the accounts’ balances are checked at the end of the accounting period and the following items are found to be omitted:-

  1. supplies on hand at 31 Dec amounted to $2,350
  2. prepaid insurance represented premiums purchased on 1 April 2006 for a period of one year
  3. depreciation of office equipment based on the straight-line method. The office equipment has a 8 year estimated life with no scrap value
  4. utilities expenses amount to $2,680
  5. salaries expense for the month of Dec is $1,500 and only be paid early next year
  6. unearned revenue on 31 Dec is $21,250

Question:

(1) Prepare the adjusting journal entries

(2) Prepare an adjusted trial balance as at 31 December 2006

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