« Accounting Test Question No 1 on Adjusted Trial Balance
Accounting Test Question No.1 On Trial Balance »
20 10 2007

Accounting Test Question No 2 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               $
      Cash            23,500

Account receivables

11,500
     Office supplies              4,300
     Prepaid insurance              6,000
     Office equipment            60,000
     Accumulated depreciation-office equipment            18,000

Accounts Payable

  5,530

Notes Payable

15,000
      Unearned revenue            12,000
       Owner,Capital            37,970

 Owner, Drawing

 6,700
       Service revenue            53,000
       Salaries expense            18,000

 Rent expense

 5,500

 Utility expense

 3,900
       Miscellaneous expense             2,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional information:

  1. Rent expense is $500 per month. Rent expense for the month of December is still unpaid
  2. The company received $12,000 at the early month of December for services performed until end of May 2007. The charge rate for the services is equally distributed among those months
  3. Prepaid insurance represented one year premiums purchased April 1, 2006
  4. Fee earned but unbilled on Dec 31 are $4,250
  5. Supplies on hand at December 31 are $1,750
  6. Depreciation of equipment is based on straight line method. The equipment has 10 years estimated life with no scrap value

Required:

  1. Journalize the adjusting entries at 31 December 2006
  2. Prepare an adjusted trial balance as at 31 December 2006

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