Question

Zeller Company needs to record the following adjusting entries: Supplies on hand on December 31 were $10. Fees earned but not billed on December 31 were $55. Depreciation of equipment was estimated to be $20 for the year. Directions: Use T accounts to record the effect of each adjusting entry and then determine the balances on Zeller's adjusted trial balance. You may also use the column labeled "Effect of Adjusting Entry" to track changes in account balances. Effect of Adjusting Entry Zeller Company Adjusted Trial Balance Dec. 31 Debit Credit 8 Zeller Company Unadjusted Trial Balance Dec. 31 Debit Credit Cash 11 300 Accounts Receivable 12 20 Supplies 14 Equipo 18 600 Accumulated Depreciation 19 30 Accounts Payabile 21 240 Mike Zelles, Capital 31 120 Fees Eamed 41 800 Wages Expense 51 150 Supplies Expose 52 Depreciation pense 56 Miscellaneous Expense 59 1,190 1.190 11 12 14 18 19 21 Accounts Receivable Supplies Equipement Accumulated Depreciation Accounts Payable Mike Zeller, Capital Fees Hamed Wars Expense Supplies Expense Depreciation Expense Miscellaneous Expense 41 SI 52 56 59

Answer 1

T-accounts:

Supplies
Beg. Bal.	$ 80	52	$ 70
End. Bal.	$ 10
Fees Earned
		Beg. Bal.	$ 800
		41	$ 55
End. Bal.	$ 855
Accounts Receivable
Beg. Bal.	$ 20
41	$ 55
End. Bal.	$ 75
Accumulated Depreciation-equipment
		Beg. Bal.	$ 30
		56	$ 20
		End. Bal.	$ 50

Zeller Company Unadjusted Trial Balance Dec. 31				Effect of Adjusting entry	Zeller Company Adjusted Trial Balance Dec. 31
		Debit	Credit				Debit	Credit
Cash	11	$ 300			Cash	11	$ 300
Accounts Receivable	12	$ 20		$ 55	Accounts Receivable	12	$ 75
Supplies	14	$ 80		($ 70)	Supplies	14	$ 10
Equipment	18	$ 600			Equipment	18	$ 600
Accumulated Depreciation	19		$ 30	$ 20	Accumulated Depreciation	19		$ 50
Accounts Payable	21		$ 240		Accounts Payable	21		$ 240
Mike Zeller, Capital	31		$ 120		Mike Zeller, Capital	31		$ 120
Fees Earned	41		$ 800	$ 55	Fees Earned	41		$ 855
Wages Expense	51	$ 150			Wages Expense	51	$ 150
Supplies Expense	52			$ 70	Supplies Expense	52	$ 70
Depreciation Expense	56			$ 20	Depreciation Expense	56	$ 20
Miscellaneous Expense	59	$ 40			Miscellaneous Expense	59	$ 40
		$ 1,190	$ 1,190				$ 1,265	$ 1,265