The trial balance of Chelsea Elliott, marketing services provider, at 30 June 20
ID: 2516732 • Letter: T
Question
The trial balance of Chelsea Elliott, marketing services provider, at 30 June 2019 was as follows (Ignore GST) CHELSEA ELLIOTT, MARKETING SERVICES Unadjusted Trial Balance as at 30 June 2019 Account Debit Credit 7780 21 700 2 100 2730 4020 12 200 Cash at bank Prepaid rent Prepaid insurance Office supplies Office equipment $ 2470 2 800 1 100 9200 22060 Unearned fees Loan payable - due 2019 C. Elliott, Capital C. Elliott, Drawings Fees revenue Salaries expense Telephone expense Rent expense 52 000 138400 57 200 6100 10200 $176030 $176030 Required (a) Using the following information, prepare adjusting entries. Use the accounts shown in the trial balance and these additional accounts: Salaries Payable, Interest Payable, Telephone Account Payable, Depreciation Expense, Office Supplies Expense Insurance Expense, Interest Expense. (a) Interest expense of $520 has accrued on the loan payable. (b) A physical count of office supplies on 30 June shows $560 of unused supplies on hand. (c) Depreciation of the office equipment this year is estimated to be S1020 (d) Half the amount in the Unearned Fees account had been earned by the end of the year. (e) The amount in the Prepaid Rent account covers this June and the next 2 months, (f) Of prepaid insurance, 80% expired this period (g) Salaries expense accrued for the last 4 days in June amounts to $1660. (h) The telephone expense for June of $670 has not been recorded or paid. No tax invoice has been issued (b) Open T accounts for the accounts shown in the trial balance and enter the 30 June balance in each account. Post the adjusting entries to the T accountsExplanation / Answer
A.
CHELSEA ELLIOT, MARKETING SERVICES
General Journal
Date Particulars Debit($) Credit($)
Adjusting Entries
30th June 2019
1. Interest Expense 520
To Interest Payable 520
(Being Interest accrued on loan payable adjusted.)
2. Office Supplies Expense 3,460
To Office Supplies 3,460
(Being office supplies used during the accounting year adjusted.)
3. Depreciation Expense- Office Equipment 1,020
To Accumuated Depriciation- Office Equipment 1,020
(Being depriciation expense for the year adjusted.)
4. Unearned Fees 550
To Fees Revenue 550
(Being unearned fees revenue now received and adjusted.)
5. Rent Expense 700
To Prepaid Rent 700
(Being prepaid rent for two months adjusted)
6. Insurance expense 2,184
To Prepaid Insurance 2,184
(Being Insurance prepaid now expired adjusted.)
7. Salaries expense 1,660
To Salaries payable 1,660
(Being salary expense adjusted.)
8. Telephone Expense 670
To Telephone account payable 670
(Being telephone expense account adjusted.)
B. Cash at Bank
Accounts Receivable
Prepaid Rent
Prepaid Insurance
Office Supplies
Accumulated Depreciation- Office Expense
Accounts Payable
Interest Payable
Telephone account payable
Salaries Payable
Unearned fees
Loan Payable
C. Elliot, Capital
C. Elliot, Drawings
Fees Revenue
Salaries Expense
Telephone Expense
Rent Expense
Interest Expense
Depreciation Expense- Office Equipment
Office Supplies Expense
Insurance Expense
Date Particulars Amount Debit($) Particulars Amount Credit($) 30/6/19 Balance 7,780Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.