ID: A 3. Part 1 Use the following unadjusted trial balance to prepare adjusting
ID: 2576776 • Letter: I
Question
ID: A 3. Part 1 Use the following unadjusted trial balance to prepare adjusting entries, given the additional information below it. Assume financial statements are prepared quarterly. Omit explanations. Crivelli Financial Services Trial Balance September 30, 2010 $ 20,000 6, Cash Accounts Receivable Office Supplies Prepaid Rent Office Furniture Accumulated Depreciation-Office Furniture Accounts Payable Unearned Revenue Common Stock Consulting Revenue Salaries Expense Insurance Expense 9,600 S 400 14,800 2,000 20,400 12,000 a. Of the revenue received in advance, 60 percent remained unearned on September 30. b. Record depreciation for the quarter on the office furniture, $480. c. Salaries earned, but unpaid, totaled $1,520. d. The Prepaid Rent applies to the six months beginning July 1, 2010. e. Office supplies on hand totaled $300 at the end of the quarter. Part 2 Indicate in the space provided below if the the adjusting entry is a deferral (D) or an accrual (A). b. C. d.Explanation / Answer
Crivelli Financial Services General Journal Part-1 For the Quarter ended 30th Sep Date particulars Debit Credit 30-Sep Unearned Revenue $ 800.00 To Consulting Revenue($2000*40%) $ 800.00 (Being amount of 40% of Unearned revenue transfer to consulting revenue account) 30-Sep Dep $ 480.00 To Accumulated Depreciation-Furniture $ 480.00 (Being amount of Depreciation provided) 30-Sep Salary A/c $ 1,520.00 To Salary Payable $ 1,520.00 (Being Amount of Salary Outstanding) 30-Sep Rent A/c 1800 To Prepaid Rent($3600/2) $ 1,800.00 (Being amount of 3 months rent from july to sep transfer from Prepaid to Rent A/c) 30-Sep Office Supplies Expenses($1000-$300) $ 700.00 To Office Supplies $ 700.00 (Being amount of Office suplies Expenses) Adjusted Trial Balance Debit Credit Cash $ 20,000.00 Accounts Receivable $ 6,400.00 Office Supplies $ 300.00 Prepaid Rent $ 1,800.00 Office Furniiture $ 9,600.00 Accumulated Depreciation $ 880.00 Accounts Payable $ 14,800.00 Salary Payable $ 1,520.00 Unearnd Revenue $ 1,200.00 Common Stock $ 20,400.00 Consulting revenue $ 12,800.00 Rent $ 1,800.00 Salary $ 8,920.00 Office Supplies Expenses $ 700.00 Depreciation Expenses $ 480.00 Insurance Expenses $ 1,600.00 Total $ 51,600.00 $ 51,600.00 Deferral: In accounting deferral means defer recognize certain revenue or expenses. Accrual: In accounting accrual means earned revenue and incurred expenses. Part- 2 a) Accrual b) Deferral c) Accrual d) Accrual e) Deferral