Good Note Company
Trial Balances
November 30, 2014
Unadjusted Adjusted
Debit
Balances
Credit
Balances
Debit
Balances
Credit
Balances
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,250 38,250
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,500 89,500
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,250 2,400
Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,250 3,850
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290,450 290,450
Accumulated Depreciation—Equipment . . . . . . . . . . . . . . . 94,500 106,100
Automobiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129,500 129,500
Accumulated Depreciation—Automobiles . . . . . . . . . . . . . 54,750 62,050
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,930 26,130
Salaries Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 8,100
Unearned Service Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000 9,000
Robin Stahl, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,020 324,020
Robin Stahl, Drawing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 75,000
Service Fees Earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 733,800 742,800
Salary Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 516,900 525,000
Rent Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,000 54,000
Supplies Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 8,850
Depreciation Expense—Equipment . . . . . . . . . . . . . . . . . . . — 11,600
Depreciation Expense—Automobiles . . . . . . . . . . . . . . . . . — 7,300
Utilities Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,900 14,100
Taxes Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,175 8,175
Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 10,400
Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,825 9,825
1,250,000 1,250,000 1,278,200 1,278,200
Instructions
Journalize the seven entries that adjusted the accounts at November 30. None of the accounts were affected by more than one adjusting entry.
Answer:
2014
Nov. 30 Supplies Expense 8,850
Supplies 8,850
Supplies used ($11,250 – $2,400).
30 Insurance Expense 10,400
Prepaid Insurance 10,400
Insurance expired ($14,250 – $3,850).
30 Depreciation Expense—Equipment 11,600
Accumulated Depreciation—Equipment 11,600
Equipment depreciation
($106,100 – $94,500).
30 Depreciation Expense—Automobiles 7,300
Accumulated Depreciation—Automobiles 7,300
Automobile depreciation
($62,050 – $54,750).
30 Utilities Expense 1,200
Accounts Payable 1,200
Accrued utilities expense
($26,130 – $24,930, or $14,100 – $12,900).
30 Salary Expense 8,100
Salaries Payable 8,100
Accrued salary ($525,000 – $516,900).
30 Unearned Service Fees 9,000
Service Fees Earned 9,000
Service fees earned ($18,000 – $9,000, or
$742,800 – $733,800).