The trial balance of State Service Company at December 31, 2009, which is the ending of its year-long accounting period, is presented below. Data required for adjusting entries include:
a. Supplies on hand at year’s end, $2,000.
b. Depreciation on furniture and fixtures, $10,000.
c. Depreciation on building, $25,000.
d. Salaries owed but not yet paid $15,000.
e. Accrued service revenue, $20,000.
f. Of the $45,000 balance of unearned service revenue, $25,000 was still unearned at the end of the year.
State Service Company
December 31, 2009
Accounts Receivable 372,000
Furniture and Fixtures 100,000
Accumulated Depreciation – Furniture and Fixtures $40,000
Accumulated Depreciation – Building 130,000
Accounts Payable 380,000
Unearned Service Revenue 45,000
Mr. X, Capital 293,000
Owner’s Withdrawals 65,000
Service Revenue 288,000
Salary Expense 170,000
Depreciation Expense – Furniture & Fixtures
Depreciation Expense – Building
Miscellaneous Expense 13,000
Total $ 1,176,000 $ 1,176,000
1. Journalize State Service Company’s adjusting entries at December 31, 2009.
2. Demonstrate T-Accounts for all the accounts and post the adjusting entries to appropriate T-Accounts (please apply account numbers on your own for reference).
3. Make the Adjusted Trial Balance.
4. Make Income Statement, Statement of Owner’s Equity, and Balance Sheet at December 31, 2009 from adjusted trial balance.