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)
J3
Date
2008
June

30

30

30

30

30

Account Titles and Explanation

Ref.

Debit

Supplies Expense...............................................
Supplies...................................................
($2,000 $600)

631
126

1,400

Utilities Expense................................................
Utilities Payable.....................................

732
244

150

Insurance Expense.............................................
Prepaid Insurance..................................
($3,000 12 months)

722
130

250

Unearned Service Revenue...............................

Service Revenue.....................................

209
400

2,500

Salaries Expense................................................
Salaries Payable.....................................

726
212

2,000

Credit

1,400

150

250

2,500

2,000

30

30

Depreciation Expense........................................
Accumulated Depreciation
Office Equipment...............................
($15,000 60 months)
Accounts Receivable..........................................
Service Revenue.....................................

711

250

158

112
400

250

1,000
1,000

(b)
Cash
Date
2008
June

Explanation
30

Balance

Ref.

Debit

Credit

Balance
7,150

Accounts Receivable
Date
2008
June

Explanation
30
30

Balance
Adjusting

Ref.

Debit

J3

1,000

Ref.

Debit

Credit

Balance
6,000
7,000

Supplies
Date
2008
June

Explanation
30
30

Balance
Adjusting

J3

Credit

1,400

Balance
2,000
600

Prepaid Insurance
Date
2008
June

Explanation
30
30

Balance
Adjusting

Ref.

Debit

J3

Credit

250

Balance
3,000
2,750

Office Equipment
Date

Explanation

Ref.

Debit

Credit

Balance

2008
June

30

Balance

15,000

Accumulated DepreciationOffice EquipmentNo. 158

Date
2008
June

Explanation
30

Adjusting

Ref.

Debit

J3

Credit
250

Balance
250

Accounts Payable
Date
2008
June

Explanation
30

Balance

Ref.

Debit

Credit

Balance
4,500

Unearned Service Revenue

Date
2008
June

Explanation
30
30

Balance
Adjusting

Ref.

Debit

J3

2,500

Ref.

Debit

Credit

Balance
4,000
1,500

Salaries Payable
Date
2008
June

Explanation
30

Adjusting

J3

Credit

Balance

2,000

2,000

Utilities Payable
Date
2008
June

Explanation
30

Adjusting

Ref.

Debit

J3

Credit

Balance

150

150

Credit

Balance

Common Stock
Date
2008
June

Explanation
30

Balance

Ref.

Debit

21,750

Service Revenue
Date
2008
June

Explanation
30
30
30

Balance
Adjusting
Adjusting

Ref.

Debit

J3
J3

Credit

Balance

2,500
1,000

7,900
10,400
11,400

Credit

Balance

Supplies Expense
Date
2008
June

Explanation
30

Adjusting

Ref.

Debit

J3

1,400

Ref.

Debit

J3

250

Ref.

Debit

J3

250

Ref.

Debit

1,400

Depreciation Expense
Date
2008
June

Explanation
30

Adjusting

Credit

Balance
250

Insurance Expense
Date
2008
June

Explanation
30

Adjusting

Credit

Balance
250

Salaries Expense
Date
2008
June

Explanation
30
30

Balance
Adjusting

J3

2,000

Ref.

Debit

Credit

Balance
4,000
6,000

Rent Expense
Date
2008
June

Explanation
30

Balance

Credit

Balance
1,000

Utilities Expense
Date
2008
June
(c)

Explanation
30

Adjusting

Ref.

Debit

J3

150

Credit

Balance
150

MASASI COMPANY, INC.

Adjusted Trial Balance
June 30, 2008

Cash..............................................................................................
Accounts Receivable...................................................................
Supplies........................................................................................
Prepaid Insurance.......................................................................
Office Equipment........................................................................
Accumulated DepreciationOffice
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

Credit

$ 250
4,500
1,500
2,000
150
21,750
11,400
1,400
250
250
6,000
1,000
150
$41,550

$41,550