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    Adjusting Entries - Greensboro Pest Control

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    Greensboro Pest Control has the following balances in selected accounts on December 31, 2012.
    Accounts Receivable $ 0
    Accumulated Depreciation - Equipment 0
    Equipment 6,650
    Interest Payable 0
    Notes Payable 15,000
    Prepaid Insurance 2,220
    Salaries and Wages Payable 0
    Supplies 2,940
    Unearned Service Revenue 30,000

    All of the accounts have normal balances. The information below has been gathered at December 31, 2012.
    1. Depreciation on the equipment for 2012 is $1,300.
    2. Greensboro Pest Control paid $2,220 for 12 months of insurance coverage on October 1, 2012.
    3. Greensboro Pest Control performed disinfecting services for a client in December 2012. The client will be billed $3,200.
    4. On December 1, 2012, Greensboro Pest Control collected $30,000 for disinfecting processes to be performed from December 1, 2012, through May 31, 2012.
    5. A count of supplies on December 31, 2012, indicates that supplies of $650 are on hand.

    Instructions: Prepare in journal form, without explanations, the end of year adjusting entries for the items listed for Greensboro Pest Control. (Show any calculations in the text boxes provided.)

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    Solution Preview

    Please see the attached Word 97-2003 document.

    Date Account/Description Debit Credit
    Adjusting ...

    Solution Summary

    This solution illustrates how to compute and make some of the most common adjusting entries in businesses, such as depreciation expense, supplies used, and insurance expense.