Problem

Preparing Adjusting Entries from a Trial BalanceThe unadjusted and adjusted trial balances...

Preparing Adjusting Entries from a Trial Balance

The unadjusted and adjusted trial balances for Tinker Corporation on December 31, 2011, are shown below:

TINKER CORPORATION TRIAL BALANCES DECEMBER 31, 2011

 

Unadjusted

Adjusted

 

Debit

Credit

Debit

Credit

Cash

$ 35,200

 

$ 35,200

 

Accounts receivable

29,120

 

34,120

 

Unexpired insurance

1,200

 

600

 

Prepaid rent

5,400

 

3,600

 

Office supplies

680

 

380

 

Equipment

60,000

 

 

60,000

Accumulated depreciation: equipment

 

$ 49,000

 

$ 50,000

Accounts payable

 

900

 

900

Notes payable

 

5,000

 

5,000

Interest payable

 

200

 

250

Salaries payable

 

 

2,100

Income taxes payable

 

1,570

 

2,170

Unearned revenue

 

6,800

 

3,800

Capital stock

 

25,000

 

25,000

Retained earnings

 

30,000

 

30,000

Fees earned

 

91,530

 

 99,530

Advertising expense

1,500

 

1,500

 

Insurance expense

6,600

 

7,200

 

Rent expense

19,800

 

21,600

 

Office supplies expense

1,200

 

1,500

 

Repairs expense

4,800

 

4,800

 

Depreciation expense: equipment

11,000

 

12,000

 

Salaries expense

26,300

 

28,400

 

Interest expense

200

 

250

 

Income taxes expense

 

7,000

7,600

 

 

$210,000

$210,000

$218,750

$218,750

Journalize the nine adjusting entries that the company made on December 31,2011.

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