Question

+ Automatic Zoom : Principles of Accounting I Your Name: Date Score Points Tutor Chapter 3 (part 3 of 4) Submitted Initials Written Cycle Project Instructor: Version 33 Instructions: Below is the unadjusted trial balance for Central Advertising Inc. Record the adjusting entries in the General Journal. Then post your adjusting entries in the t-accounts provided and prepare an adjusted trial balance. General Journal PR De Central Advertising Inc The Balance August 31, 2003 ret $19075 3000 Accounts Receivable Prepaid Insurance Advertising Supplies Equipment Accounts Payable Uneamed Revenue Notes Payable Common Stock Dividends Advertising Revenue Uity Expense 5425 4000 5000 13000 2000 14000 $36425 $36425 • One month of interest on the notes payable is $50 • The company has performed $1750 of advertising services for a customer who has not been billed yet. • An inventory of advertising supplies reveals that $700 remain unused . The depreciation on equipment for the month of August is $200 • The company has completed 52000 of the work for which you were prepaid on 820 • The company has used $175 of phone and internet services for which no bill has been received • One month of the 6-month insurance policy purchased has expired (been used)

Answer 1

	Date	Account	Debit	Credit
	August,31	Interest Expense	$50
		Interest Payable		$50
	August,31	Accounts Receivable	$1,750
		Advertising Revenue		$1,750
	August,31	Supplies Expenses	$1,300		(2000-700)
		Advertising Supplies		$1,300
	August,31	Depreciation expenses	$200
		Equipment		$200
	August,31	Unearned Revenue	$2,000
		Advertising Revenue		$2,000
	August,31	Utility expenses	$175
		Accrued Expenses		$175
	August,31	Insurance expenses	$250		(1500/6)
		Prepaid Insurance		$250
		T-ACCOUNTS
		CASH
	DEBIT		CREDIT
	$19,075
	$19,075	Closing Balance
		ACCOUNTS RECEIVABLE
	DEBIT		CREDIT
	$3,000
	$1,750
	$4,750	Closing Balance
		PREPAID INSURANCE
	DEBIT		CREDIT
	$1,500		$250
	$1,250	Closing Balance
		ADVERTISING SUPPLIES
	DEBIT		CREDIT
	$2,000		$1,300
	$700	Closing Balance
		EQUIPMENT
	DEBIT		CREDIT
	$8,000		$200
	$7,800	Closing Balance
							ACCOUNTS PAYABLE DEBIT CREDIT $425 $425 Closing Balance UNEARNED REVENUE DEBIT $2,000 CREDIT $4,000 $2,000 Closing Balance NOTES PAYABLE DEBIT CREDIT $5,000 $5,000 Closing Balance COMMON STOCK DEBIT CREDIT $13,000 $13,000 Closing Balance RETAINED EARNINGS DEBIT CREDIT $0 $0 CREDIT Closing Balance DIVIDENDS DEBIT $2,000 $2,000 Closing Balance ADVERTISING REVENUE DEBIT CREDIT $14,000 $1,750 $2,000 $17,750 CREDIT Closing Balance UTILITY EXPENSE DEBIT $850 $175 $1,025 Closing Balance CREDIT SUPPLIES EXPENSE DEBIT $1,300 $1,300 Closing Balance CREDIT INTEREST EXPENSE DEBIT $50 $50 Closing Balance INTEREST PAYABLE DEBIT CREDIT $50 $50 Closing Balance CREDIT DEPRECIATION EXPENSE DEBIT $200 $200 Closing Balance ACCRUED EXPENSE DEBIT CREDIT $175 $175 Closing Balance INSURANCE EXPENSES DEBIT $250 $250 Closing Balance CREDIT $19,075 $4,750 $1,250 $700 $7,800 ADJUSTED TRIAL BALANCE CASH ACCOUNTS RECEIVABLE PREPAID INSURANCE ADVERTISING SUPPLIES EQUIPMENT ACCOUNTS PAYABLE UNEARNED REVENUE NOTES PAYABLE ACCRUED EXPENSE INTEREST PAYABLE COMMON STOCK RETAINED EARNINGS DIVIDENDS ADVERTISING REVENUE UTILITY EXPENSE SUPPLIES EXPENSE INTEREST EXPENSE DEPRECIATION EXPENSE INSURANCE EXPENSES Total $425 $2,000 $5,000 $175 $50 $13,000 $2,000 $17,750 $1,025 $1,300 $50 $200 $250 $38,400 $38,400