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 Account Titles and Explanation Ref. Debit Credit
2008
June 30 Supplies Expense............................................... 631 1,400
Supplies................................................... 126  1,400
  ($2,000 – $600)

30 Utilities Expense................................................ 732   150

Utilities Payable..................................... 244   150

30 Insurance Expense............................................. 722   250

Prepaid Insurance.................................. 130   250
  ($3,000 ÷ 12 months)

30 Unearned Service Revenue............................... 209 2,500

Service Revenue..................................... 400 2,500

30 Salaries Expense................................................ 726 2,000

Salaries Payable..................................... 212 2,000
 30 Depreciation Expense........................................ 711   250
Accumulated Depreciation—
  Office Equipment............................... 158   250
  ($15,000 ÷ 60 months)

30 Accounts Receivable.......................................... 112 1,000

Service Revenue..................................... 400 1,000

(b)

Cash No. 101

Date Explanation Ref. Debit Credit Balance
2008
June 30 Balance  7,150

Accounts Receivable No. 112

Date Explanation Ref. Debit Credit Balance
2008
June 30 Balance   6,000
30 Adjusting J3 1,000  7,000

Supplies No. 126

Date Explanation Ref. Debit Credit Balance
2008
June 30 Balance   2,000
30 Adjusting J3 1,400  600

Prepaid Insurance No. 130

Date Explanation Ref. Debit Credit Balance
2008
June 30 Balance   3,000
30 Adjusting J3 250  2,750

Office Equipment No. 157

Date Explanation Ref. Debit Credit Balance
2008
June 30 Balance  15,000

Accumulated Depreciation—Office EquipmentNo. 158

Date Explanation Ref. Debit Credit Balance
2008
June 30 Adjusting J3 250    250

Accounts Payable No. 201

Date Explanation Ref. Debit Credit Balance
2008
June 30 Balance   4,500

Unearned Service Revenue No. 209

Date Explanation Ref. Debit Credit Balance
2008
June 30 Balance   4,000
30 Adjusting J3 2,500  1,500

Salaries Payable No. 212

Date Explanation Ref. Debit Credit Balance
2008
June 30 Adjusting J3 2,000 2,000

Utilities Payable No. 244

Date Explanation Ref. Debit Credit Balance
2008
June 30 Adjusting J3   150    150

Common Stock No. 311

Date Explanation Ref. Debit Credit Balance
2008
June 30 Balance  21,750
Service Revenue No. 400
Date Explanation Ref. Debit Credit Balance
2008
June 30 Balance   7,900
30 Adjusting J3 2,500 10,400
30 Adjusting J3 1,000 11,400

Supplies Expense No. 631

Date Explanation Ref. Debit Credit Balance
2008
June 30 Adjusting J3 1,400 1,400

Depreciation Expense No. 711

Date Explanation Ref. Debit Credit Balance
2008
June 30 Adjusting J3 250   250

Insurance Expense No. 722

Date Explanation Ref. Debit Credit Balance
2008
June 30 Adjusting J3 250   250

Salaries Expense No. 726

Date Explanation Ref. Debit Credit Balance
2008
June 30 Balance   4,000
30 Adjusting J3 2,000  6,000

Rent Expense No. 729

Date Explanation Ref. Debit Credit Balance
2008
June 30 Balance  1,000
Utilities Expense No. 732
Date Explanation Ref. Debit Credit Balance
2008
June 30 Adjusting J3 150   150

(c) MASASI COMPANY, INC.

Adjusted Trial Balance
June 30, 2008

Debit Credit
Cash.............................................................................................. $ 7,150
Accounts Receivable...................................................................   7,000
Supplies........................................................................................ 600
Prepaid Insurance.......................................................................   2,750
Office Equipment........................................................................  15,000
Accumulated Depreciation—Office
  Equipment............................................................................... $   250
Accounts Payable........................................................................   4,500
Unearned Service Revenue........................................................ 1,500
Salaries Payable..........................................................................   2,000
Utilities Payable..........................................................................   150
Common Stock............................................................................  21,750
Service Revenue..........................................................................  11,400
Supplies Expense........................................................................ 1,400
Depreciation Expense.................................................................     250
Insurance Expense......................................................................     250
Salaries Expense.........................................................................   6,000
Rent Expense...............................................................................   1,000
Utilities Expense..........................................................................     150
$41,550 $41,550