Question

I need help with making sure the adjusting journal entries are correct and I'm not sure why the adjusted trail balances aren't equaling each other. Please help with both! The information for the journal entries is the first posted piece of information starting with On July 1, 2019.

| a. Use the following information to prepare adjusting entries for Broomfield Industries: On July 1, 2019, Broomfield Industries signed a 4.2% bank loan due in 3 years. This is the only outstanding note payable. b. Prepaid insurance represents a 12-month insurance policy purchased on May 1. c. On November 1, 2019, Broomfield Industries paid $12,780 for a 4-month lease for office space. d. Unearned revenue represents a 8-month contract for consulting services. The payment was received on October 1, 2019. e. Supplies on hand total $4,674. f. g. Equipment is depreciated on a straight-line basis; residual value is estimated to be $12,000 with an estimated service life of 10 years. The assets were held the entire year. On August 1, Broomfield Industries issued Denver Supplies an 9-month note receivable at a 5.7% annual interest rate. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The aging schedule of accounts receivable must be completed to determine management's desired balance for 2019. i. Accrued wages totaling $71,490 were unpaid and unrecorded at December 31, 2019. 1 j. Utility costs incurred but unrecorded for the month of December were estimated to be $12,314.

Answer 1

Adjusting entries are all correct, but there is some problem with the unadjusted trial balance. If you add both the sides of the unadjusted trial balance, you'll get a difference of $ 47880. The debit side falls short, credit side is all good.

I'm afraid with the provided information, i'll not be able to fix it for you.

This is the reason for which your adjusted trial balance is not matching.