30E_1

Question

Question :The worksheet of Macey’s Landscaping Services follows but is incomplete.Requirements 1. Calculate and enter the adjusted account balances in the Adjusted Trial Balance columns. 2. Describe each adjusting entry. For example, a. Prepaid rent expires, $1,150.

Step-by-Step Solution

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Answer

Worksheet is as follows:

MACEY'S LANDSCAPING SERVICES
Worksheet
December 31, 2018

Account Names	Unadjusted Trial Balance	Adjustments	Adjusted Trial Balance
Debit	Credit		Debit		Credit	Debit	Credit
Cash	$27,400						$27,400
Accounts Receivable	6,700		(h)	$3,500			10,200
Office Supplies	500				(b)	$350	150
Prepaid Rent	2,300				(a)	1,150	1,150
Equipment	50,000						50,000
Accumulated Depreciation—Equipment					(c)	$1,300		1,300
Trucks	114,000						114,000
Accumulated Depreciation—Trucks					(d)	1,900		1,900
Accounts Payable		$3,800						3,800
Utilities Payable		300						300
Salaries Payable					(f)	7,200		7,200
Interest Payable					(g)	300		300
Unearned Revenue		4,500	(e)	3,200				1,300
Notes Payable		25,000						25,000
Common Stock		141,900						141,900
Dividends	21,000						21,000
Service Revenue		84,000			(e,h)	6,700		90,700
Rent Expense	9,200		(a)	1,150			10,350
Salaries Expense	23,800		(f)	7,200			31,000
Supplies Expense			(b)	350			350
Utilities Expense	4,600						4,600
Depreciation Expense—Equipment			(c)	1,300			1,300
Depreciation Expense—Trucks			(d)	1,900			1,900
Interest Expense			(g)	300			300
Total	$259,500	$259,500		$18,900		$18,900	$273,700	$273,700