Question

Accounting Cycle & Transaction Analysis Final Assessment: Outline and Rubric Step TWO: Prepare the Adjusted Trial Balance Use the templates in the Excel document to prepare the unadjusted trial balance for Purity Water, Inc., at June 30. Journalize and post the adjusting entries for June based on the following adjustment information. a) Supplies on hand, $200. b) Depreciation, $100 equipment, $75 furniture, $330 vehicles. c) Services performed but unbilled, $1,900. d) Accrued salaries, $550. ACCOUNTS POST. REF. Dr. Cr. DATE June 30 Prepare an adjusted trial balance for Purity Water, Inc., at the end of June. ??

After completing the adjusting entries, what would be the adjusted trial balance?

Answer 1

Adjusting entries are as follows ÷amt in $

1.supplies expenses a/c dr. 1,170

To lawn supplies a/c     1,170

2. depreciation -equipment a/c dr. 100

depreciation -Furniture a/c dr.    75

Depreciation - Vehicles a/c dr. 330

To Accumulated deprciation -equipment a/c    100

To accumulated depreciation -Furniture a/c 75

To Accumulated depreciation- Vehicles a/c 330

3. unbilled service revenue a/c dr. 1,900

To service revenue a/c 1,900

4. Salaries expenses a/c dr. 550

To accrued salaries expenses a/c 550

Adjusted trial balance as follows÷ amt in $

Particulars debit credit

Cash 30,635

Account receivables 2,300

Lawn supplies 200

Equipment 2,400

Land 17,000

Vehicle 35,800

Furniture 3,600

Unbilled service revenue 1,900

Account payable 4,380

Note payable 35,800

Accrued salaries expense 550

Accumulated depreciation - equipment 100

Accumulated depreciation -furniture 75

Accumulated depreciation -vehicle 330

Common stock 52,500

Service revenue 13,500

Dividend 5,300

Supplies expenses 1,170

Salaries expenses    2,750

Utilities expenses 1,625

Rent expenses 1,800

Depreciation equipment 100

Depreciation furniture 75

Depreciation vehicle 330

Miscellaneous expenses 250         

Total    107,235 107,235

NOTE JOURNAL ENTRIES HAS BEEN PASSED FOR BETTER UNDERSTANDING OF ADJUSTED TRIALBALANCE ONLY.

1. Service revenue after adjustment = $(11,600+1,900)=$13,500

2. Salaries expenses after adjustment = $(2,200+ 550)= 2,750