Question

I need help with this adjusting entries problem.

The details of the end of month adjustments for June are as follows:

• Office Furniture owned by the business: original purchase price was $7,000, estimated useful life was 5 years, and estimated residual value was $500 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.
• Office Equipment owned by the business: original purchase price was $54,000, estimated useful life was 12 years, and estimated residual value was $3,500 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.
• Electricity expense for the month of June is estimated to be $884.
• The water usage for the month of June is estimated to be $221.
• Sales staff work every single day during the week including weekends and are not paid until the end of each two weeks. Wages were last paid up to and including June 28. Wages incurred after that day (from June 29 to June 30 inclusive) are estimated to have been $740 per day.
• Interest expense incurred during the month of June but not yet paid to BitiBank for the bank loan is $205.
• Interest earned from short-term investments in MRMC Bank for the month of June is $100.
• Office supplies totalling $2,159 are still on hand at June 30.
• 2 months of rent remained pre-paid at the start of June.
• 3 months of advertising remained pre-paid at the start of June.
• 5 months of insurance remined pre-paid at the start of June.

• When calculating the portion of prepayments that expire during the month of June, you are asked to assume that an equal amount of expense is incurred per month.

  Note: I've already done some of the work. Please help me filling out the yellow boxes.

• 
  Unadjusted Trial Balance Adjusted Trial Balance Balance Sheet Adjustments Income Statement Acct. No. Account Name Credit Debit Credit Debit Credit Debit Credit Debit Debit Credit 100 Cash 92263 92263 92263 102 Short-term Investments 20000 20000 20000 110 ARC Accounts Receivable Control 5827 5827 5827 112 Interest Receivable 0 100 100 100 120 Merchandise Inventory 77173 77173 77173 130 Office Supplies 4151 140 Prepaid Rent 4000 2000 2000 2000 141 Prepaid Advertising 3000 6000 9000 6000 142 Prepaid Insurance 3100 150 Office Furniture 7000 7000 7000 151 Accum Depn: Office Furniture 1517 160 Office Equipment 54000 54000 54000 161 Accum Depn: Office Equipment 16483 210 APC Accounts Payable Control 600 600 600 220 Wages Payable 0 221 Electricity Payable 0 222 Water Payable 0 225 Interest Payable 0 250 Bank Loan Payable 41000 41000 41000 300 Common Stock 70000 70000 70000 301 Retained Earnings 114097 114097 114097 400 Sales Revenue 52294 52294 52294 401 Sales Returns and Allowances 1981 1981 1981 402 Sales Discounts 170 170 170 403 Interest Revenue 239 239 500 Purchases 3100 3100 3100 501 Purchase Returns and Allowances 2413 2413 2413 502 Purchase Discounts 94 94 94 511 Advertising Expense 516 Wages Expense 11363 540 Rent Expense 0 541 Electricity Expense 0 542 Water Expense 543 Insurance Expense 0 544 Office Supplies Expense 0 545 Salary Expense 5600 5600 5600 560 Depn Expense: Office Furniture 561 Depn Expense: Office Equipment 0 571 Interest Expense 0 572 Admin. Expense - Bank Charges 9 Totals 298728 298728 Net income or loss
  

Answer 1

Acct. No.	Account	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
		Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
100	Cash	92263				92263				92263
102	Short-term investments	20000				20000				20000
110	ARC - Accounts receivable control	5827				5827				5827
112	Interest receivable	0		100		100				100
120	Merchandise inventory	77173				77173				77173
130	Office supplies	4151			1992	2159				2159
140	Prepaid rent	4000			2000	2000				2000
141	Prepaid advertising	9000			3000	6000				6000
142	Prepaid insurance	3100			620	2480				2480
150	Office furniture	7000				7000				7000
151	Accum, depn,: office furniture		1517		108		1625				1625
160	Office equipment	54000				54000				54000
161	Accum. depn.: office equipment		16483		351		16834				16834
210	APC - Accounts payable control		600				600				600
220	Wages payable		0		1480		1480				1480
221	Electricity payable		0		884		884				884
222	Water payable		0		221		221				221
225	Interest payable		0		205		205				205
250	Bank loan payable		41000				41000				41000
300	Common stock		70000				70000				70000
301	Retained earnings		114097				114097				114097
400	Sales revenue		52294				52294		52294
401	Sales returns and allowances	1981				1981		1981
402	Sales discounts	170				170		170
403	Interest revenue		239		100		339		339
500	Purchases	3100				3100		3100
501	Purchase returns and allowances		2413				2413		2413
502	Purchase discounts		94				94		94
511	Advertising expense	0		3000		3000		3000
516	Wages expense	11363		1480		12843		12843
540	Rent expense	0		2000		2000		2000
541	Electricity expense	0		884		884		884
542	Water expense	0		221		221		221
543	Insurance expense	0		620		620		620
544	Office supplies expense	0		1992		1992		1992
545	Salary expense	5600				5600		5600
560	Depn expense: office furniture	0		108		108		108
561	Depn expense: office equipment	0		351		351		351
571	Interest expense	0		205		205		205
572	Admin. Expense - bank charges	9				9		9
	Totals	298737	298737	10961	10961	302086	302086	33084	55140	269002	246946
	Net income or loss							22056			22056

Note: The totals of the unadjusted trial balance are 298737 and not 298728 as has been shown. Kindly re-check.

Working:

Depreciation-office furniture = ($7000 - $500)/(5 x 12) = $108.33

Depreciation-office equipment = ($54000 - $3500)/(12 x 12) = $350.69

All amounts have been rounded off to the nearest whole dollar in the absence of specific instructions regarding the same. Kindly round off as required.