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Month-End Adjusting Entries and Adjusted Trial Balance

See the attached file.

The trial balance of Padre Paradise at December 31, 2008, and the data needed for the month-end adjustments follow:

a. Insurance coverage still remaining at December 31, $300
b. Supplies used during the month, $200
c. Depreciation for the month, $900
d. Accrued advertising expense at December, 31, $300 (Use Accounts Payable as the liability account needed)
e. Accrued salaries at December 31, $100
f. Service revenue still unearned at December 31, $1000

TRIAL BALANCE:
ACCOUNT TITLE Debit Credit
Cash $22,200
Accounts Receivable $44,100
Prepaid Insurance $3,100
Supplies $800
Building $412,700
Accumulated depreciation, building $321,600
Accounts Payable $1900
Salary Payable
Unearned Service Revenue $2,300
Jane Carlsen, capital $155,000
Jane Carlsen, withdrawals $2,900
Service Revenue $7,900
Salary Expense $2,100
Insurance Expense
Depreciation expense, building
Advertising Expense $800
Supplies Expense
Total $488,700 $488,700.

Attachments

Solution Preview

Please see the attached Excel spreadsheet for full solutions.

Journal
Date Accounts and Explanations PR Debit Credit

Adjusting entries at December 31, 2008
Dec 31 insurance ...

Solution Summary

The solution discusses the month-end adjusting entries and adjusted trial balance.

$2.19