The Signage Company
Trial Balances
March 31, 2014
Unadjusted Adjusted
Debit
Balances
Credit
Balances
Debit
Balances
Credit
Balances
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,750 4,750
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,400 17,400
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200 2,175
Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 1,150
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 100,000
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,000 170,000
Accumulated Depreciation—Buildings . . . . . . . . . . . . . . . . 51,500 61,000
Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 75,000
Accumulated Depreciation—Trucks . . . . . . . . . . . . . . . . . . . 12,000 17,000
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,920 8,750
Salaries Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,400
Unearned Service Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,500 3,850
Al Bosch, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256,400 256,400
Al Bosch, Drawing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500 7,500
Service Fees Earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,680 169,330
Salary Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000 81,400
Depreciation Expense—Trucks . . . . . . . . . . . . . . . . . . . . . . . . — 5,000
Rent Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,900 11,900
Supplies Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 4,025
Utilities Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200 8,030
Depreciation Expense—Buildings . . . . . . . . . . . . . . . . . . . . . — 9,500
Taxes Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,900 2,900
Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 7,850
Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,150 9,150
500,000 500,000 517,730 517,730
Instructions
Journalize the seven entries that adjusted the accounts at March 31. None of the accounts were affected by more than one adjusting entry.
Answer:
2014
Mar. 31 Supplies Expense 4,025
Supplies 4,025
Supplies used ($6,200 – $2,175).
31 Insurance Expense 7,850
Prepaid Insurance 7,850
Insurance expired ($9,000 – $1,150).
31 Depreciation Expense—Buildings 9,500
Accumulated Depreciation—Buildings 9,500
Depreciation ($61,000 – $51,500).
31 Depreciation Expense—Trucks 5,000
Accumulated Depreciation—Trucks 5,000
Depreciation ($17,000 – $12,000).
31 Utilities Expense 1,830
Accounts Payable 1,830
Accrued utilities expense
($8,750 – $6,920, or $8,030 – $6,200).
31 Salary Expense 1,400
Salaries Payable 1,400
Accrued salaries ($81,400 – $80,000).
31 Unearned Service Fees 6,650
Service Fees Earned 6,650
Service fees earned ($10,500 – $3,850, or
$169,330 – $162,680).