College Accounting: Chapter 5 Mastery Problem - Kristi Williams offers family counseling services

College Accounting
Chapter 5 Mastery Problem
Kristi Williams offers family counselling services specializing in financial and marital problems. A chart of accounts and a trial balance taken on December 31, 20--, follow. CHART OF ACCOUNTS Assets 101 Cash Revenues 142 Office Supplies 401 Client Fees 145 Prepaid Insurance 181 Office Equipment Expenses 181.1 Accumulated Depr - Office Equipment 511 Wages Expense 187 Computer Equipment 521 Rent Expense 187.1 Accumulated Depr - Computer Equipment 523 Office Supplies Expense 533 Utilities Expense Liabilities 535 Insurance Expense 201 Notes Payable 541 Depr. Expense - Office Equipment 202 Accounts Payable 542 Depr. Expense - Computer Equipment 549 Miscellaneous Expense Owner's Equity 311 Kristi Williams, Capital 312 Kristi Williams, Drawing Kristi Williams Family Counselling Services Trial Balance December 31, 20-- Account Title Account No. Debit Credit Cash 101 8,730 Office Supplies 142 700 Prepaid Insurance 145 600 Office Equipment 181 18,000 Computer Equipment 187 6,000 Notes Payable 201 8,000 Accounts Payable 202 500 Kristi Williams, Capital 311 11,400 Kristi Williams, Drawing 312 3,000 Client Fees 401 35,800 Wages Expense 511 9,500 Rent Expense 521 6,000 Utilities Expense 533 2,170 Miscellaneous Expense 549 1,000 $55,700 $55,700

Information for year-ended adjustments is as follows:
a. Office supplies on hand at year-end amounted to $100.
b. On January 1, 20--, Williams purchased office equipment that cost $18,000. It has an expected useful life of 10 years and no salvage value.
c. On July 1, 20--, Williams purchased computer equipment costing $6,000. It has an expected useful life of three years and no salvage value. Assume that Williams computes depreciation to the nearest full month. d. On December 1, 20--, Williams paid a premium of $600 for a six-month insurance policy.

Required:
1. Prepare the work sheet for the year ended December 31, 20--.
2. Prepare adjusting entries in a general journal.
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