[fortwife]

PREPAID INSURANCE $450-DEBIT
FILM ON HAND $250-DEBIT
CAMERAS $20,000-DEBIT
ACCUMULATED DEPRECIATION-CAMERAS $3,667- CREDIT.
UNEARNED REVENUE $5700-CREDIT
NOTE PAYABLE $3000-CREDIT
SALARIES EXPENSE $2400-DEBIT.

IM TO DO ADJUSTED TRAIL BALANCE AND IM NOT SURE WERE TO START OR WHAT
TO DO WITH THE INFORMATION AVAILABLE BELOW:
I'm not sure about the formate..

The insurance policy was dated December 1; the monthly insurance cost
is $50.

Film on hand at December 31,200x7 was $180.

The cameras were purchased on January 1,200x7. The estimated life is
five years.

The balance in unearned revenue is $2000

Interest owed but not paid on the note was $30.

Salaries owed but not paid at December 31 were $2000.

I'm not sure how to start my entries.
I have spent a lot of time trying to figure this out.. Your help will be
greatly appreciated.

Thanks
fortwife

[4Melanie]

Looks like a photography business
Known info:
Balance sheet
Assets Debits Credits
Prepaid insurance $450
Inventory – film 250
Equipment – cameras 20000
Accum. Depr. 3667

Liabilities
Deferred (Unearned) Revenue 5700
Note Payable 3000

Salary Expense 2400

AJE #1 – adjusting journal entry
Insurance Exp 50
Prepaid Insurance 50
To adjust insurance to actual

AJE#2
Material Expense(250-180) 70
Inventory 70
To adjust inventory to actual

AJE #3
Depreciation exp( 20,000/5=4000/yr straight-line method)
333
Accum Depr 333
To adjust Accum Depr to computed balance

AJE #4
Deferred (Unearned) Rev. 3700
Revenue 3700
To record revenue earned

AJE#5
Interest Expense 30
Interest Payable 30
To adjust interest payable to actual

AJE#6
Salary Expense 2000
Salaries Payable 2000
To adjust payables for salaries due – note on this one I am assuming that this additional $2