Entering Adjustments on an Unadjusted Trial Balance
I need to know how to enter adjustments on an unadjusted trial balance for the following:
a. As of December 31, 2005, employees had earned $900 of unpaid and unrecorded salaries. The next payday is January 4, at which time $1,600 of salaries will be paid.
(Unadjusted TB: Salaries expense Dr. $28,000 & Salaries payable Cr. $0)
b. The notes payable requires an interest payment to be made every three months. The amount of unrecorded accrued interest at December 31, 2005, is $1,250. The next interest payment, at an amount of $1,500, is due on January 15, 2006.
(Unadjusted TB: Interest expense Dr. $3,750 & Interest payable Cr. $0)
c. Analysis of the unearned member fees account shows $5,600 remaining unearned at December 31, 2005. (Unadjusted TB: Member fees earned Cr. $53,000 & Unearned member fees Cr. $14,000)
d. In addition to the member fees included in the revenue account balance, the company has earned another $9,100 in unrecorded fees that will be collected on January 31, 2006. The company I also expected to colelct $8,000 on that same day for new fees earned in January 2006. (Unadjusted TB:Cash Dr. $:confused: 13,000; AR Dr. 0; T. Allen, Capital $58,250)
e. Depreciation expense for the year is $12,500. (Unadjusted TB: Depreciation expense - Equipment Dr. $0; Accumulated depreciation - Equipment Cr. $25,000)
This is how made the entries:
BULLSEYE RANGES
December 31, 2005
(a) Salaries expense Dr. 900
Salaries payable Cr. 900
(b) Interest expense Dr. 1,250
Interest payable Cr. 1,250
(c) T. Allen Capital Dr. 5,600
Unearned member fees Cr. 5,600
(d) Accounts receivable Dr. 9,100
Member fees earned Cr. 9,100
(e) Depreciation expense - Equipment Dr. 12,500
Accumulated depreciation - Equipment Cr. 12,500
