Trial Balance 

Trial Balance 

                                               Debit                               credit 

Cash                                     24,600

prepaid insruance                5400

supplies                                   4300

land                                        40,000

buildings                               132,000

equipment                               36000

accounts payable                                                  6,500

unearned rent revenue                                          6,800

mortgage  payable                                             120,000

common stock                                                       100,00

dividends                                           5,000

rent revenue                                                           80,000

salaries& wages expense              53,000  

utilites expense                                  9,400

maintenance & repairs expense      3600

                                                              313,300          313,300

 

1. Insurance expires at the rate of 450 per month 

2. A count of supplies on August 31 shows $700 of supplies on hand.

3. Annual depreciation is $6,600on buildings and $4,000 on equipment.

4. Unearned rent of $5000 was earned prior to augus 31

5. Salaries of $600 were unpaid at August 31.

6. Rentals of $1,600 were due from tenants at August 31(use accounts receivable)

7. The mortgage interest rate is 95 per year. (The mortgage was taken out August 1)

 

Instructions 

a) journalize the adjusting entries on august 31 for the 3 month period juen 1-august 31

b) prepare a ledger using t accounts. enter the trial balance amounts and post the the adjusting entries

c) prpare an adjusted trial balance on august 31

d) prepare an income statement and a retained earnings statement for the 3 months ended august 31 and a classified balance sheet as of august 31.

e) identify which accounts should be closed on august 31.