Accounting Adjusting Entries Posting and Preparing an Adjusted Trial Balance MASASI COMPANY INC Trial Balance June 30 2008 Account Number Debit Credit 101 Cash 7 150 112 Accounts Receivable 6 000 126 Supplies 2 000 130 Prepaid Insurance 3 000 157 Office Equipment 15 000 201 Accounts Payable 4 500 209 Unearned Service Revenue 4 000 311 Common Stock 21 750 400 Service Revenue 7 900 726 Salaries Expense 4 000 729 Rent Expense 1 000 Total 38 150 Total 38 150 In addition to those accounts listed on the trial balance the chart of accounts for Masasi Company Inc also contains the following accounts and account numbers No 158 Accumulated Depreciation Office Equipment No 212 Salaries Payable No 244 Utilities Payable No 631 Supplies Expense No 711 Depreciation Expense No 722 Insurance Expense and No 732 Utilities Expense Other data 1 Supplies on hand at June 30 are 600 2 A utility bill for 150 has not been recorded and will not be paid until next month 3 The insurance policy is for a year 4 2 500 of unearned service revenue has been earned at the end of the month 5 Salaries of 2 000 are accrued at June 30 6 The office equipment has a 5 year life with no salvage value It is being depreciated at 250 per month for 60 months 7 Invoices representing 1 000 of services performed during the month have not been recorded as of June 30 Instructions a Prepare the adjusting entries for the month of June Use J3 as the page number for your journal b Post the adjusting entries to the ledger accounts Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column c Prepare an adjusted trial balance at June 30 2008 Use the templates in Appendix D Complete all three tabs a Date 2008 June Account Titles and Explanation 30 Supplies Expense Supplies 2 000 600 30 Utilities Expense Utilities Payable 30 Insurance Expense Prepaid Insurance 3 000 12 months 30 Unearned Service Revenue Service Revenue 30 Salaries Expense Salaries Payable Ref 631 126 732 244 722 130 209 400 726 212 J3 Debit 1 400 150 250 2 500 2 000 Credit 1 400 150 250 2 500 2 000 30 Depreciation Expense 250 Accumulated Depreciation Office Equipment 15 000 60 months 30 Accounts Receivable Service Revenue 1 000 711 158 112 400 250 1 000 No 101 Balance 7 150 No 112 Balance 6 000 7 000 No 126 Balance 2 000 600 No 130 Balance 3 000 2 750 No 157 Ref J3 J3 J3 Debit Credit Ref Debit Credit 1 000 Ref Debit Credit 1 400 250 b Cash Date 2008 June Explanation 30 Balance Explanation Accounts Receivable Date 2008 June 30 30 Balance Adjusting Supplies Date 2008 June 30 30 Balance Adjusting Explanation Prepaid Insurance Date 2008 June 30 30 Balance Adjusting Office Equipment Explanation Ref Debit Credit Date 2008 June Explanation Ref Debit Credit Balance 30 Balance 15 000 Accumulated Depreciation Office EquipmentNo 158 Date 2008 June 30 Adjusting Explanation Ref J3 Debit Credit Balance 250 250 Accounts Payable Date 2008 June 30 Balance Explanation Unearned Service Revenue Date Explanation 2008 June 30 30 Balance Adjusting Salaries Payable Date 2008 June 30 Adjusting Explanation Utilities Payable Date 2008 June 30 Adjusting Explanation Common Stock Date 2008 Ref Debit Credit Ref Debit Credit 2 500 Debit Credit 2 000 150 Debit Credit J3 Ref J3 Ref J3 No 201 Balance 4 500 No 209 Balance 4 000 1 500 No 212 Balance 2 000 No 244 Balance 150 No 311 Balance Explanation Ref Debit Credit Explanation Ref Debit Credit June 30 Balance Service Revenue Date 2008 June 30 30 30 Balance Adjusting Adjusting Supplies Expense Date 2008 June 30 Adjusting Explanation Depreciation Expense Date 2008 June 30 Adjusting Explanation Insurance Expense Date 2008 June 30 Adjusting Explanation Salaries Expense Date 2008 June 30 30 Balance Adjusting Rent Expense Date 2008 J3 J3 Ref J3 Ref J3 Ref J3 2 500 1 000 Debit Credit Debit Credit 1 400 250 250 Debit Credit 21 750 No 400 Balance 7 900 10 400 11 400 No 631 Balance 1 400 No 711 Balance 250 No 722 Balance 250 No 726 Balance 4 000 6 000 No 729 Balance Explanation Ref Debit Credit J3 2 000 Explanation Ref Debit Credit June 30 Balance Utilities Expense Date 2008 June 30 Adjusting Explanation c Ref J3 Debit Credit 150 1 000 No 732 Balance 150 MASASI COMPANY INC Adjusted Trial Balance June 30 2008 Credit Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accumulated Depreciation Office Equipment Accounts Payable Unearned Service Revenue Salaries Payable Utilities Payable Common Stock Service Revenue Supplies Expense Depreciation Expense Insurance Expense Salaries Expense Rent Expense Utilities Expense Debit 7 150 7 000 600 2 750 15 000 1 400 250 250 6 000 1 000 150 41 550 250 4 500 1 500 2 000 150 21 750 11 400 41 550