[tierrat]

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.

[pready]

This is a homework problem. You need to try to to do it yourself and if you have a specific question we will try to help you.

For Number A. the adjusting entry will be for the difference of what your trial balance says is your inventory and the actual inventory.

You need to analyze each Number to figure out what the adjusting entry will be and how to get the amount.

Hint: All adjusting entries will involve one Income Statement account and one Balance Sheet account.