29E_3 - Horngren'S Financial And Managerial Accounting

Question

Question :The worksheet of Best Jobs Employment Service follows but is incomplete.The following data at April 30, 2018, are given for Best Jobs Employment Service: a. Service revenue accrued, \(700. b. Office supplies used, \)300. c. Depreciation on equipment, \(1,300. d. Salaries owed to employees, \)1,400. Requirements 1. Calculate and enter the adjustment amounts directly in the Adjustments columns. Use letters a through d to label the four adjustments. 2. Calculate and enter the adjusted account balances in the Adjusted Trial Balance columns. 3. Prepare each adjusting journal entry calculated in Requirement 1. Date the entries, and include explanations

Step-by-Step Solution

Answer

Adjusting entries are as follows:

	Journal entry
Date	Accounts and Explanation	Debit	Credit
April 30,2018	Accounts Receivable	$700
	Service Revenue		$700
	To record service revenue accrued
April 30,2018	Supplies Expense	$300
	Office Supplies		$300
	To record office supplies used
April 30,2018	Depreciation Expense—Equipment	$1,300
	Accumulated Depreciation—Equipment		$1,300
	To record depreciation on equipment
April 30,2018	Salaries Expense	$1,400
	Salaries Payable		$1,400
	To record accrued salaries expense

 

 

Step-by-Step-Solution Step1: Explanation on Adjusted Trial Balance

Adjusted trial balance is prepared after the journalizing and posting of adjusting entries in the books of accounts.

Step2: Explanation on Adjusting Entries

Adjusting entries records the accrued revenues and expenses at the end of the accounting period.