Question

You are given the following unadjusted Trial Balance: 

Adjustment data as on 31^th December is given as follows; 

a. Prepaid Insurance still in force $ 900. 

b. Supplies used during the month $ 500 

c. Depreciation for the month $ 1000 

d. Accrued salary expense $ 300 

e. Unearned service revenue still unearned $ 1500. 

You are required to prepare adjusted Trial Balance.

Answer 1

Adjusted Trial Balance December 31
Account Titles	Debit	Credit
	$	$
Cash	12,000
Accounts Receivable	14,400
Prepaid Insurance	900
Supplies	900
Building	435,000
Accumulated Depreciation		311,500
Accounts Payable		1,930
Salary Payable		300
Unearned Service Revenue		1,500
Common Stock		122,000
Retained Earnings		19,060
Dividends	2,940
Service Revenue		17,200
Salary Expense	3,100
Insurance Expense	1,900
Depreciation Expense	1,000
Advertising Expense	850
Supplies Expense	500
Totals	$ 473,490	$ 473,490

Answer 2

	Unadjusted Trail balance		Adjustments		Adjusted Trail balance
Particulars	Dr. ($)	Cr. ($)	Dr. ($)	Cr. ($)	Dr. ($)	Cr. ($)
Cash	12000				12000
Accounts Receivable	14400				14400
Prepaid Insurance	2800			1900	900
Supplies	1400			500	900
Building	435000				435000
Accumulated Depreciation		310500		1000		311500
Accounts Payable		1930				1930
Salary Payable				300		300
Unearned service revenue		3000	1500			1500
Common stock		122000				122000
Retained earnings		19060				19060
Dividends	2940				2940
Service revenue		15700		1500		17200
Salary expense	2800		300		3100
Insurance expense			1900		1900
Depreciation expense			1000		1000
Advertising expense	850				850
Supplies expense			500		500
	472190	472190	5200	5200	473490	473490