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Enter the trial balance amounts and post the adjusting entries.

I am an unclear on how to do this section for some reason.B. Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries.

P2-4A A review of the ledger of Greenberg Company at December 31, 2002, produces the following data pertaining to the preparation of annual adjusting entries.
1. Salaries Payable $0. There are eight salaried employees. Salaries are paid every Friday for the current week. Five employees receive a salary of $750 each per week, and three employees earn $500 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December.
GRANT ADVERTISING AGENCY INC.
Trial Balance
December 31, 2002
Unadjusted Adjusted
Dr. Cr. Dr. Cr.
Cash $ 11,000 $ 11,000
Accounts Receivable 20,000 21,500
Art Supplies 8,600 5,000
Prepaid Insurance 3,350 2,500
Printing Equipment 60,000 60,000
Accumulated Depreciation $ 28,000 $ 35,000
Accounts Payable 5,000 5,000
Interest Payable -0- 150
Notes Payable 5,000 5,000
Unearned Advertising Fees 7,200 5,600
Salaries Payable -0- 1,300
Common Stock 25,500 25,500
Retained Earnings -0- -0-
Dividends 12,000 12,000
Advertising Revenue 58,600 61,700
Salaries Expense 10,000 11,300
Insurance Expense 850
Interest Expense 350 500
Depreciation Expense 7,000
Art Supplies Expense 3,600
Rent Expense 4,000 4,000
$129,300 $129,300 $139,250 $139,250
4. Unearned rent of $5,100 was earned prior to August 31.
5. Salaries of $400 were unpaid at August 31.
6. Rentals of $800 were due from tenants at August 31. (Use Accounts Receivable.)
7. The mortgage interest rate is 12% per year. (The mortgage was taken out on August 1.)
Instructions
(a) Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31.
(b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.)
(c) Prepare an adjusted trial balance on August 31.
(d) Prepare an income statement and a retained earnings statement for the 3 months ending August 31 and a balance sheet as of August 31.

Solution Summary

Classic accounting cycle exercise completed for student.

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