Adjusting Journal Entries-Deferral and Accrual... Help please?
http://www.pklsoftware.com/Student_Manuals/W4Me1_Manuals/W4Me_Problem_3.PDF
Above is the unadjusted trial balance:
A. The June 30 inventory of office supplies total $260.
B. The expired insurance for the quarter totals $440 for policy one, $625 for policy two, and
$400 for policy three.
C. A total of $1,250 worth of advertising copy was paid for and correctly charged to the
Advertising Expense account during the quarter. An examination of the account shows
That $400 of radio ads for the business will be aired during the first week of July which is
The beginning of the third quarter of operations.
Work4Me I – Problem 3
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: April 1, 2010
Page 5
D. Accrued property taxes for the quarter total $275.
E. Wages are accrued for 15 hours worked at a rate of $11.50 per hour.
F. Depreciation of Office Equipment for the quarter totals $475.
G. Depreciation of the automobile has been calculated to be $1,800 per year and is calculated
On straight-line basis.
H. The building owned by the company was purchased at an historical cost of $124,000 and is
Being depreciated at a rate of $600 per month.
I. Rent on the other property used by the business was prepaid for six months in advance.
On April 1, the full $9,000 payment was charged to the Prepaid Rent account.
J. It is determined that an additional $250 worth of accounting services have been completed
For a client but have not yet been billed. All consulting services for clients have been
Billed for the quarter.
K. Total accrued interest on the short-term note payable, the long-term note payable, and the
Mortgage payable is $445.70.
L. An examination of the Unearned Consulting Fees account determines that $1,470 of this
Account balance has been earned as of June 30.
