Using an adjusted trial balance to prepare adjusting journal entries [10 min]Refer to the...

Using an adjusted trial balance to prepare adjusting journal entries [10 min]

Refer to the data in Exercise

Requirement

1. Journalize the five adjustments, all dated December 31, 2012. Explanations are not required.

Preparing adjusting entries and preparing an adjusted trial balance [10-15 min]

First Class Maids Company, the cleaning service, started the preparation of its adjusted trial balance as follows:

During the 12 months ended December 31, 2012, First Class Maids

a. used supplies of $1,800.

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b. used up prepaid insurance of $620.

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c. used up $460 of the equipment through depreciation.

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d. accrued salary expense of $310 that First Class Maids hasn’t paid yet.

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e. earned $360 of the unearned service revenue.

Requirement

1. Prepare an adjusted trial balance. Use Exhibit as a guide. Key each adjustment by letter.

Preparation of Adjusted Trial Balance