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    Adjusting Entries

    Uploaded by

    Allen Carl
    The document provides an unadjusted trial balance for a construction firm and additional information needed to prepare adjusting entries. Adjusting entries are needed for prepaid insurance, supplies used, depreciation of equipment, accrued rental income, fees earned, unpaid salaries, unearned rental income, and interest income on a note receivable. An adjusted trial balance will be prepared in a 6-column worksheet showing the unadjusted balances, adjustments, and adjusted balances.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Adjusting Entries

    Uploaded by

    Allen Carl
    503 views1 page
    The document provides an unadjusted trial balance for a construction firm and additional information needed to prepare adjusting entries. Adjusting entries are needed for prepaid insurance, supplies used, depreciation of equipment, accrued rental income, fees earned, unpaid salaries, unearned rental income, and interest income on a note receivable. An adjusted trial balance will be prepared in a 6-column worksheet showing the unadjusted balances, adjustments, and adjusted balances.

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    Adjusting_Entries(2)

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    The document provides an unadjusted trial balance for a construction firm and additional information needed to prepare adjusting entries. Adjusting entries are needed for prepaid insurance, supplies used, depreciation of equipment, accrued rental income, fees earned, unpaid salaries, unearned rental income, and interest income on a note receivable. An adjusted trial balance will be prepared in a 6-column worksheet showing the unadjusted balances, adjustments, and adjusted balances.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    503 views1 page

    Adjusting Entries

    Uploaded by

    Allen Carl
    The document provides an unadjusted trial balance for a construction firm and additional information needed to prepare adjusting entries. Adjusting entries are needed for prepaid insurance, supplies used, depreciation of equipment, accrued rental income, fees earned, unpaid salaries, unearned rental income, and interest income on a note receivable. An adjusted trial balance will be prepared in a 6-column worksheet showing the unadjusted balances, adjustments, and adjusted balances.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Adjusting Entries

    Mr. Jose Calves operates a construction firm and the following unadjusted ledger balances as of
    December 31, of the current year are made available.

    30,250.0
    Cash 0 Jose Calves, Capital 64,880.00
    50,000.0
    Accounts Receivable 0 Jose Calves, Drawing 40,400.00
    20,000.0 439,500.0
    Notes Receivable 0 Fee Earned 0
    Accrued Interest Income 0.00 Rental Income 0.00
    215,500.0
    Prepaid Insurance 0.00 Salary Expense 0
    Office Supplies 0.00 Rent Expense 55,000.00
    91,600.0
    Office Equipment 0 Utilities Expense 16,500.00
    18,320.0
    Accumulated Depreciation 0 Insurance Expense 7,200.00
    Accounts Payable 9,250.00 Supplies Expense 5,400.00
    Accrued Salary Expense 0.00 Depreciation Expense 0.00
    Accrued Rent Expense 0.00 Miscellaneous Expense 12,600.00
    12,500.0
    Unearned Rental Income 0 Interest Income 0.00

    The data needed to determine the year-end adjustments are as follows:

    1. Office supplies used during the year amounted to P4,050.


    2. One-year insurance premium was paid on April 1 of the current year.
    3. Office equipment has a useful life of 10 years without salvage value.
    4. Monthly rental for December in the amount of P5,000 was due but not yet paid.
    5. Accrued fees earned but not yet collected, P10,000.
    6. Unpaid salaries and wages at December 31, P4,400.
    7. Unearned rental income as at December 31, was P6,500.
    8. The 60-day, 12% note receivable was received on December 1.

    Required:

    a. Prepare the necessary adjusting entries.


    b. Prepare a 6-column worksheet with the following column headings; Unadjusted Trial Balance,
    Adjustments, and Adjusted Trial Balance.
    c. Prepare the adjusted Trial Balance.

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