Question

The unadjusted trial balance of Princess Ltd. at October 31, 2017, appears below. The adjustment data at October 31, 2017, is provided.

Adjustment data at October 31, 2017.

A. Accrued service revenue at October 31, 2017, $2,300.

B. Prepaid rent expired during the month. The unadjusted prepaid balance of $3,000 relates to the period October through December.

C. Supplies used during October, $2,600.

D. Depreciation on furniture for the month. The estimated useful life of the furniture is three years.

E. Accrued salary expense at October 31 for Monday, Tuesday, and Wednesday. The five-day weekly payroll of $5,500 will be paid on Friday, November 2.

Requirement: Prepare the adjusted trial balance of Princess Ltd. at October 31, 2017. The unadjusted balances have been entered.

Account	Debit	Credit
Cash	9,300
Accounts receivable	17,000
Prepaid rent	3,000
Supplies	2,600
Furniture	37,800
Accumulated depreciation		3,300
Accounts payable		19,000
Salary payable
Share capital		27,000
Retained earnings		13,000
Dividends	4,000
Service revenue		15,000
Salary expense	2,100
Rent expense
Utilities expense	1,500
Depreciation expense
Supplies expense
Total	77,300	77,300

Answer 1

Solution:

Adjusted Trial Balance
Account	Debit	Credit
Cash	9,300
Accounts receivable (17000+2300)	19,300
Prepaid rent (3000-1000)	2,000
Supplies (2600-2600)	0
Furniture	37,800
Accumulated depreciation (3300+1050)		4,350
Accounts payable		19,000
Salary payable		3300
Share capital		27,000
Retained earnings		13,000
Dividends	4,000
Service revenue (15000+2300)		17,300
Salary expense (2100+3300)	5,400
Rent expense	1000
Utilities expense	1,500
Depreciation expense	1050
Supplies expense	2600
Total	83,950	83,950