Question

The accounting records of Mackay Architects include the following selected, unadjusted balances at March 31: Accounts Receivable, $1,500; Office Supplies, $700; Prepaid Rent, $2,240; Equipment, $8,000; Accumulated Depreciation-Equipment, $0; Salaries Payable, $0; Unearned Revenue, $900; Service Revenue, $4,100; Salaries Expense, $800; Supplies Expense, $0; Rent Expense, $0; Depreciation Expense-Equipment, $0. The data developed for the March 31 adjusting entries are as follows: a. Service revenue accrued, $700. b. Unearned revenue that has been earned, $100. c. Office Supplies on hand, $300. d. Salaries owed to employees, $200. e. One month of prepaid rent has expired, $560. f. Depreciation on equipment, $120. Requirements 1. Open a T-account for each account using the unadjusted balances given. 2. Journalize the adjusting entries using the letter and Marel'1 date in the date column. 3. Post the adjustments to the T-accounts, entering each adjustment by letter. Show each account's adjusted balance.

Answer 1

2.

	Account	Debit	Credit
a	Accounts Receivable	$       700
	Service Revenue		$       700
b	Unearned Revenue	$       100
	Service Revenue		$       100
c	Supplies Expense	$       400
	Office Supplies		$       400
d	Salaries Expense	$       200
	Salaries Payable		$       200
e	Rent Expense	$       560
	Prepaid Rent		$       560
f	Depreciation Expense - Equipment	$       120
	Accumulated Depreciation - Equipment		$       120

1 and 3

Accounts Receivable
Date	Particular	Amount	Date	Particular	Amount
	Op Balance	$      1,500
a	Service revenue	$         700		Cl Balance	$   2,200
		$      2,200			$   2,200
Unearned Revenue
Date	Particular	Amount	Date	Particular	Amount
b	Service Revenue	$         100		Op Bal	$       900
	Cl Bal	800
		$         900			$       900
Office Supplies
Date	Particular	Amount	Date	Particular	Amount
	Op Bal	$         700	c	Supplies Expense	$       400
				Cl Bal	300
		$         700			$       700
Salaries Payable
Date	Particular	Amount	Date	Particular	Amount
	Cl bal	$         200		Op Bal	$          -
			d	salaries Expense	200
		$         200			$       200
Prepaid Rent
Date	Particular	Amount	Date	Particular	Amount
	Op Bal	$      2,240	e	Rent Expense	$       560
					$   1,680
		$      2,240			$   2,240
Accumulated Depreciation - Equipment
Date	Particular	Amount	Date	Particular	Amount
	Cl bal	$         120		Depreciation Expense	$       120
		$         120			$       120

Service Revenue
Date	Particular	Amount	Date	Particular	Amount
	Cl Bal	$     4,900		Op Bal	$      4,100
			a	Accounts Receivable	$         700
			b	Unearned Revenue	100
		$     4,900			$      4,900
Supplies Expense
Date	Particular	Amount	Date	Particular	Amount
	Op Bal
c	Office Supplies	400		CL Bal	400
		400			400
Salaries Expense
Date	Particular	Amount	Date	Particular	Amount
	Op Bal	800		Cl Bal	$      1,000
d	Salaries Payable	200
		1000			1000
Rent Expense
Date	Particular	Amount	Date	Particular	Amount
e	Prepaid Rent	$        560		Cl Bal	$         560
		$        560			$         560
Depreciation Expense - Equipment
Date	Particular	Amount	Date	Particular	Amount
f	Accumulated Dep	$        120		Cl Bal	$         120
		$        120			$         120