Question

The December 31, Year 1, unadjusted trial balance for a company is presented below. Credit Debit $ 8,400 13,400 5,280 2,400 Accounts Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenue Common Stock Retained Earnings Service Revenue Salaries Expense $ 1,400 11,000 4,400 39,680 27,000 $56,480 $56,480 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $5,280, represents payment on October 31, Year 1, for rent from November 1, Year 1, to April 30, Year 2. 2. The balance of Deferred Revenue, $1,400, represents payment in advance from a customer. By the end of the year, $350 of the services have been provided. 3. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4, Year 2 4. The balance of Supplies, $2,400, represents the amount of office supplies on hand at the beginning of the year of $900 plus an additional $1,500 purchased throughout Year 1. By the end of Year 1, only $640 of supplies remains.

Answer 1

Adjusted trial balance

	Debit	Credit
Cash	8400
Account receivable	13400
Prepaid rent (5280*4/6)	3520
Supplies	640
Deferred revenue (1400-350)		1050
Salaries payable		700
Common Stock		11000
Retained earnings		4400
Service revenue (39680+350)		40030
Salaries expense	27700
Rent expense	1760
Supplies expense	1760
Total	57180	57180