Problem

Reconstructing a partial worksheet.The adjusted trial balance of University Book Store as...

Reconstructing a partial worksheet.

The adjusted trial balance of University Book Store as of November 30, 2010, after the firm’s first month of operations, appears on page 145.

Appropriate adjustments have been made for the following items.

a. Supplies used during the month, $4,800.


b. Expired rent for the month, $6,000.


c. Depreciation expense for the month, $1,400.

INSTRUCTIONS

1. Record the Adjusted Trial Balance in the Adjusted Trial Balance columns of the worksheet.


2. Prepare the adjusting entries in the Adjustments columns.


3. Complete the Trial Balance columns of the worksheet prior to making the adjusting entries. Analyze: What was the balance of Prepaid Rent prior to the adjusting entry for expired rent?

University Book Store Adjusted Trial Balance November 30, 2010

Account Name

Debit

Credit

Cash

45,150

 

Accounts Receivable

6,624

 

Supplies

7,200

 

Prepaid Rent

36,000

 

Equipment

54,000

 

Accumulated Depreciation—Equipment

 

1,400

Accounts Payable

 

16,000

Julie Acker, Capital

 

81,674

Julie Acker, Drawing

6,000

 

Fees Income

 

84,000

Depreciation Expense—Equipment

1,400

 

Rent Expense

6,000

 

Salaries Expense

15,000

 

Supplies Expense

4,800

 

Utilities Expense

900

 

Totals

183,074

183,074

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