Accounting Review Problem 3
Adjusting Entries, T Accounts, and Adjusted Trial Balance
This was the unadjusted trial balance for Certified Answering Service on December 31, 200x:
The following information is also available:
- Insurance that expired during December amounted to $40.
- Office supplies on hand at the end of December totaled $75.
- Depreciation for the month of December totaled $100.
- Accrued wages at the end of December totaled $120.
- Revenues earned for services performed but not yet billed on December 31 totaled $300.
- Revenues earned for services performed that were paid in advance totaled $160.
Required:
Perform the following actions:
- Prepare T accounts for the accounts in the trial balance and enter the balances.
- Determine the required adjusting entries and record them directly in the T accounts. Open new T accounts as needed.
- Prepare an adjusted trial balance.
- Prepare an income statement, statement of owner's equity, and a balance sheet for the month ended December 31, 200x.