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Posting Adjusting Journal Entries; Financial Statements

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The adjustments columns of the worksheet for Pear Corporation are shown below.

Adjustments
Account Titles Debit Credit
Accounts Receivable 900
Prepaid Insurance 650
Accumulated Depreciation 770
Salaries and Wages Payable 1,200
Service Revenue 900
Salaries and Wages Expense 1,200
Insurance Expense 650
Depreciation Expense 770
3,520 3,520

Instructions
(a) Prepare the adjusting entries.

(b) Assuming the adjusted trial balance amount for each account is normal, indicate the financial statement column to which each balance should be extended.

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Solution Preview

The adjustments columns of the worksheet for Pear Corporation are shown below.

(See attached file for chart)

Instructions
(a) Prepare the adjusting entries.

Accounts ...

Solution Summary

This solution illustrates how to determine which adjusting entries were made to result in an adjusted trial balance and to which financial statement each account belongs.

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