Question

I am unsure if my data on the last page are correct. I feel as though I am missing at least one number in each. Thanks!

P3-36A Journalizing and posting adjustments to the four-column accounts and preparing an adjusted trial balance The unadjusted trial balance of Newport Inn Company at December 31, 2016, and the data needed for the adjustments follow NEWPORT INN COMPANY Unadjusted Trial Balance December 31, 2016 Balance Account Title Cash Accounts Receivable Prepaid Insurance Office Supplies Building Accumulated Depreciation-Building Accounts Payable Salaries Payable Unearned Revenue Coffey, Capital Coffey, Withdrawals Service Revenue Salaries Expense Insurance Expense Depreciation Expense-Building Advertising Expense Supplies Expense Total Debit Credit 11,900 13,900 3,500 1,100 515,000 350,000 4,500 2,500 175,620 2,170 18,200 2,500 750 $ 550,820 $550,820

Answer 1

2.

SUPPLIES EXPENSE					Account No.
Date	Item	Post Ref.	Debit	Credit	Balance
					Debit	Credit
2016
Dec. 31	b.		400		400

3.

4. The total debits equalling the total credits in the adjusted trial balance does not necessarily mean that the adjusting entries have been recorded correctly. In case the account is incorrect, the debits and credits will match however, the entries would be incorrect since they would affect the incorrect accounts. Also, there could be compensating errors where an account is debited in excess by say $100 and another account is credited in excess by $100. In such case the trial balance debits and credits will match however, the individual account balances would be incorrect.