Accounting Test Question No 2 On Adjusted Trial Balance
Posted by: slang in Adjusted Trial BalanceThe following is the unadjusted accounts of ABC Co as at 31 December 2006 :
| $ |
|
| 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:
- Rent expense is $500 per month. Rent expense for the month of December is still unpaid
- 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
- Prepaid insurance represented one year premiums purchased April 1, 2006
- Fee earned but unbilled on Dec 31 are $4,250
- Supplies on hand at December 31 are $1,750
- Depreciation of equipment is based on straight line method. The equipment has 10 years estimated life with no scrap value
Required:
- Journalize the adjusting entries at 31 December 2006
- Prepare an adjusted trial balance as at 31 December 2006



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