The Signage Company specializes in the maintenance and repair of signs, such as billboards. On March 31, 2019, the accountant for The Signage Company prepared the trial balances shown at the top of the following page.
The Signage Company Trial Balances March 31, 2019 Unadjusted Adjusted Debit Balances Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,750 4,750 Accounts Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,400 17,400 Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200 2,175 Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 1,150 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 100,000 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,000 170,000 Accumulated Depreciation—Buildings. . . . . . . . . . . . . . . . 51,500 61,000 Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 75,000 Accumulated Depreciation—Trucks. . . . . . . . . . . . . . . . . . . 12,000 17,000 Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,920 8,750 Salaries Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,400 Unearned Service Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,500 3,850 Mary Bakken, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256,400 256,400 Mary Bakken, Drawing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500 7,500 Service Fees Earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,680 169,330 Salary Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000 81,400 Depreciation Expense—Trucks . . . . . . . . . . . . . . . . . . . . . . . — 5,000 Rent Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,900 11,900 Supplies Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 4,025 Utilities Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200 8,030 Depreciation Expense—Buildings . . . . . . . . . . . . . . . . . . . . — 9,500 Taxes Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,900 2,900 Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 7,850 Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,150 9,150 500,000 500,000 517,730 517,730
Instructions
Journalize the seven entries that adjusted the accounts at March 31. None of the accounts were affected by more than one adjusting entry.
Answer:
2019
Mar. 31 Supplies Expense4,025
Supplies4,025
Supplies used ($6,200 – $2,175).
31 Insurance Expense7,850
Prepaid Insurance7,850
Insurance expired ($9,000 – $1,150).
31 Depreciation Expense—Buildings 9,500
Accumulated Depreciation—Buildings 9,500
Depreciation ($61,000 – $51,500).
31 Depreciation Expense—Trucks 5,000
Accumulated Depreciation—Trucks5,000
Depreciation ($17,000 – $12,000).
31 Utilities Expense1,830
Accounts Payable1,830
Accrued utilities expense
($8,750 – $6,920, or $8,030 – $6,200).
31 Salary Expense1,400
Salaries Payable1,400
Accrued salaries ($81,400 – $80,000).
31 Unearned Service Fees6,650
Service Fees Earned6,650
Service fees earned ($10,500 – $3,850, or
$169,330 – $162,680).