Adjusting Entry & Worksheet Preparation
1. Tony Masasi started his own consulting firm, Solo Company, on June 1, 2008. The trial balance at
June 30 is as follows.
Masasi Company
Trial Balance
June 30, 2008
Account Number
Debait
Credit
--------------------------------------100
Cash
$7150
110
Accounts Receivable
6000
120
Prepaid insurance
3000
130
Supplies
2000
135
office Equipment
15000
200
Account Payable
`
$4500
230
Unearned Service Revenue
4000
300
T. Masasi, Capital
21750
400
Service Revenue
7900
510
Salaries Expense
4000
520
Rent Expense
1000
$38150
$38150
-------------------In addition to those accounts listed on the trial balance, the chart of accounts for Solo Company
also contains the following accounts and account numbers No. 136 Accumulated Depreciation Office Equipment, No – 210 Utilities Payable, No. 220 Salaries Payable, No. 530 Depreciation
Expense, No. 540 Insurance Expense, No. 550 Utilities Expense, and No. 560 Supplies Expense.
Other Data:
1. Supplies on hand at June 30 are $600.
2. A utility bill for $550 has not been recorded and will not be paid until next month.
3. The insurance policy is for year.
4. $2500 of unearned service revenue has been earned at the end of the month.
5. Salaries of $2000 are accrued at June 30.
6. The office equipment has a 5-year life with no salvage value. It is being depreciated at $250 per
month for 60 months.
7. Invoices representing $1000 of services performed during the month have not been recorded as
of June 30.
Instruction:
Prepare the adjusting entries for the month of June.
2. Sherlock Holmes operation as a private investigator on January 1, 2017. The trial balance columns of
the work sheet for Sherlock Holmes P. I. at March 31 as follows
TOMAS MAGNUM P. I.
Work sheet
For The Quarter Ended March 31, 2017
Trial balance
Account Titles
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Notes payable
Accounts Payable
T. Magnum, Capital
T. Magnum, Drawing
Service Revenue
Salaries Expense
Travel Expense
Rent Expense
Miscellaneous Expense
Dr.
11400
5620
1050
2400
30000
Cr.
10000
12350
20000
600
13620
2200
1300
1200
200
55970
55970
Other Data :
1.
2.
3.
4.
5.
Supplies on hand total $380.
Depreciation is $1000 per quarter.
Interest accrued for the month of March is $300.
Insurance expires at the rate of $200 per month.
Services provided but unbilled at March 31 total $530.
Instruction:
Enter the trial balance on a work sheet and complete the work sheet.