ACC - P3-45 DAVIS CONSULTING

P3-45 Preparing adjusting entries and preparing an adjusted trial balance
This problem continues the Davis Consulting situation from Problem P2-43 of Chapter 2. You will need to use the unadjusted trial balance and posted T-accounts that you prepared in Problem P2-43. The unadjusted trial balance at December 31, 2014 is duplicated below:
Account Title
Office Supplies
Cash
Debit Credit
Accounts Receivable
Equipment
Furniture
Accounts Payable
Unearned Revenue
Davis, Capital
Davis, Withdrawals
Service Revenue
Rent Expense
Utilities Expense
Total
Balance
$ 16,400
$ 26,700 $ 26,700
4,200
2,600
18,000
550
1,200
900
1,800
$ 4,700
1,400
1,400
250
DAVIS CONSULTING
Unadjusted Trial Balance
December 31, 2014
At December 31, the business gathers the following information for the adjusting entries:
a. Accrued service revenue, $550.
b. Earned $700 of the service revenue collected in advance on December 21.
c. Office supplies on hand, $200.
d. Depreciation on equipment, $30; Depreciation on furniture, $70.
e. Accrued $685 expense for administrative assistant’s salary.
Requirements
1. Journalize and post the adjusting entries using the T-accounts that you completed in Problem P2-43. In the T-accounts, denote each adjusting amount as Adj. and an account balance as Balance.
2. Prepare an adjusted trial balance as of December 31, 2014.