Kristi Williams offers family counseling services specializing in financial and marital problems.
Kristi Williams Family Counseling Services UNADJUSTED TRIAL BALANCE December 31, 20--
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| 1 | Cash | 8,730.00 | |
| 2 | Office Supplies | 700.00 | |
| 3 | Prepaid Insurance | 600.00 | |
| 4 | Office Equipment | 18,000.00 | |
| 5 | Computer Equipment | 6,000.00 | |
| 6 | Notes Payable | | 8,000.00 |
| 7 | Accounts Payable | | 500.00 |
| 8 | Kristi Williams, Capital | | 11,400.00 |
| 9 | Kristi Williams, Drawing | 3,000.00 | |
| 10 | Client Fees | | 35,800.00 |
| 11 | Wages Expense | 9,500.00 | |
| 12 | Rent Expense | 6,000.00 | |
| 13 | Utilities Expense | 2,170.00 | |
| 14 | Miscellaneous Expense | 1,000.00 | |
| 15 | Totals | 55,700.00 | 55,700.00 |
Information for year-end 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. |
| CHART OF ACCOUNTS |
| Kristi Williams |
| General Ledger |
| ASSETS | | 101 | Cash | | 142 | Office Supplies | | 145 | Prepaid Insurance | | 181 | Office Equipment | | 181.1 | Accumulated Depreciation-Office Equipment | | 187 | Computer Equipment | | 187.1 | Accumulated Depreciation-Computer Equipment |
| LIABILITIES | | 201 | Notes Payable | | 202 | Accounts Payable |
| EQUITY | | 311 | Kristi Williams, Capital | | 312 | Kristi Williams, Drawing |
| | EXPENSES | | 511 | Wages Expense | | 521 | Rent Expense | | 523 | Office Supplies Expense | | 533 | Utilities Expense | | 535 | Insurance Expense | | 541 | Depreciation Expense-Office Equipment | | 542 | Depreciation Expense-Computer Equipment | | 549 | Miscellaneous Expense |
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Solution: ACC 101-Kristi Williams offers family counseling services