Acc280 Financial Accounting Week 3: Appendix D P3-1A Masasi Company

Acc280 Financial Accounting

Week 3 Assignment
Appendix D

P3-1A 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 $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 atJune 30, 2008. Use the templates in Appendix D. Complete all three tabs.
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