An unadjusted trial balance for Bob's Service Company as of July 31, 20__ is shown below.
|
Debit
|
Credit
|
|
Balances
|
Balances
|
|
Cash .
|
9,218
|
|
|
Accounts Receivable
|
7,277
|
|
|
Supplies
|
2,750
|
|
|
Prepaid Rent
|
8,712
|
|
|
Tools & Equipment
|
21,829
|
|
|
Accumulated Depreciation
|
|
1,535
|
|
Accounts Payable.
|
|
7,117
|
|
Capital Stock
|
|
5,000
|
|
Retained Earnings
|
|
32,417
|
|
Dividends
|
3,234
|
|
|
Service Fees
|
|
28,699
|
|
Salary Expense ...
|
15,929
|
|
|
Miscellaneous Expense
|
5,819 74,768
|
74,768
|
The data needed to determine end-of-month adjustments are as follows:
(a) Salaries accrued but not paid at the end of the month amount to $2,000.
(b) The $8,712 debit in the prepaid rent account is the payment of one year's rent on July 1.
(c) The supplies on hand as of July 31 cost $1,000.
(d) Depreciation of the tools and equipment for July is estimated at $400.
(e) Unrecorded fees for service rendered in July but collected in August amount to $2,100.
Instructions:
(1) Journalize the adjusting entries. Add additional accounts as needed.
(2) Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.