Adjustment in general account balances.
Listed below are the unadjusted general ledger account balances of Olsen Company at June 30, 2009 (amounts are reflected at their normal balance):
|
Cash
|
6,775
|
|
Accounts Receivable
|
2,500
|
|
Office Supplies
|
950
|
|
Prepaid Insurance
|
2,000
|
|
Building
|
100,000
|
|
Accumulated Depreciation - Bldg.
|
60,000
|
|
Delivery Van
|
36,000
|
|
Accumulated Depreciation - Van
|
1,200
|
|
Accounts Payable
|
5,500
|
|
Unearned Rent Revenue
|
800
|
|
Note Payable
|
18,000
|
|
Common Stock
|
20,000
|
|
Retained Earnings
|
26,000
|
|
Service Revenue
|
39,000
|
|
Rent Revenue
|
4,000
|
|
Wage Expense
|
21,600
|
|
Insurance Expense
|
475
|
|
Depreciation Expense - Building
|
2,500
|
|
Depreciation Expense - Van
|
1,200
|
|
Supplies Expense
|
500
|
Additional information is available on June 30, 2009, the end of a monthly accounting period.
a. Olsen Company purchased a 2-year insurance policy on February 1, 2009 and debited Prepaid Insurance for $2,400.
b. On January 1, 2009, a tenant in an apartment building owned by Olsen Company paid six months' rent in advance. The amount received was credited to Unearned Rent Revenue.
c. A count of office supplies at June 30 revealed $240 of supplies on hand.
d. On March 31, 2009, Olsen Company purchased a delivery van for $36,000. Annual depreciation is estimated to be $7,200.
e. The depreciation on the building for June has already been recorded.
f. Olsen Company has two office employees who earn $80 and $100 per day, respectively. They are paid each Friday for a five-day work week that begins each Monday. June 30 is a Tuesday in 2009.
g. On June 1, Olsen Company signed a 6-month, 8%