AC2760 Financial Accounting: Week 3 P3-5A Jacksonville Financial Services Co., which specializes

AC2760 Financial Accounting
Week 3 Assignment

P3-5A Adjusting Entries and adjusted trial balance
Jacksonville Financial Services Co., which specializes in appliance repair services, is owned and operated by Cindy Latty. Jacksonville Financial Services Co.'s accounting clerk prepared the unadjusted trial balance at December 31, 2011, shown below.
Jacksonville Financial Services Co.
Unadjusted Trial Balance
December 31, 2011
Debit Credit
Cash 10,200
Accounts Receivable 34,750
Prepaid Insurance 6,000
Supplies 1,725
Land 50,000
Building 80,750
Accumulated Depreciation-Building 37,850
Equipment 45,000
Accumulated Depreciation-Equipment 17,650
Accounts Payable 3,750
Unearned Rent 3,600
Cindy Latty, Capital 103,550
Cindy Latty, Drawing 8,000
Fees Earned 158,600
Salaries and Wages Expense 56,850
Utilities Expense 14,100
Advertising Expense 7,500
Repairs Expense 6,100
Miscellaneous Expense 4,025
325,000 325,000

The data needed to determine year-end adjustments are as follows:
a. Depreciation of building for the year, $2,100.
b. Depreciation of equipment for the year, $3,000.
c. Accrued salaries and wages at December 31, $800.
d. Unexpired insurance at December 31, $1,500.
e. Fees earned but unbilled on December 31, $2,150.
f. Supplies on hand at December 31, $600.
g. Rent unearned at December 31, $1,500.

1. Journalize the adjusting entries. Add additional accounts as needed.
2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.
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