Adjusting Entries At the end of 2007 the Ritter Company prepared a trial balance, recorded and posted its adjusting entries, and then prepared an adjusted trial balance. Selected accounts and account balances from the trial balance and adjusted trial balance are as follows:
|
Partial Trial Balance
|
Partial Adjusted Trial Balance
|
|
Debit Credit
|
Debit Credit
|
|
Depreciation expense
|
$ 0
|
$3,960
|
|
Interest payable (due May 14, 2009)
|
$ 0
|
$ 810
|
|
Bad debts expense
|
0
|
|
410
|
|
|
Utilities expense
|
1,480
|
|
1,682
|
|
|
Rental revenue
|
|
1,650
|
|
2,635
|
|
Income tax expense
|
0
|
|
2,740
|
|
|
Prepaid insurance
|
1,742
|
|
1,380
|
|
|
Office salaries payable
|
|
0
|
|
540
|
|
Rent expense
|
0
|
|
800
|
|
|
Accumulated depreciation
|
|
14,820
|
|
18,780
|
|
Interest receivable (due March 1, 2008)
|
0
|
|
320
|
|
|
Prepaid rent
|
1,600
|
|
800
|
|
|
Office salaries expense
|
5,600
|
|
6,140
|
|
|
Income taxes payable
|
|
0
|
|
2,740
|
|
Insurance expense
|
300
|
|
662
|
|
|
Allowance for doubtful accounts
|
|
130
|
|
540
|
|
Interest expense
|
0
|
|
810
|
|
|
Unearned rent
|
|
600
|
|
0
|
|
Utilities payable
|
|
0
|
|
202
|
|
Interest revenue
|
|
620
|
|
940
|
Partial Partial Adjusted Trial Balance Trial Balance
|
Debit
|
Credit
|
Debit
|
Credit
|
|
Sales salaries expense
|
7,300
|
|
7,850
|
|
|
Office supplies
|
1,150
|
|
700
|
|
|
Rent receivable
|
0
|
|
385
|
|
|
Advances to salespersons
|
770
|
|
220
|
|
|
Office supplies expense
|
0
|
|
450
|
|
Required
1. By comparing the partial trial balance to the partial adjusted trial balance, determine the adjusting entries that the company made on December 31, 2007. Prepare your answers in general journal form.
2. Assuming that the company uses reversing entries, indicate which adjusting entries should be reversed.