Question

Joe Clark has his own Desktop Publishing business. In May, you as the bookkeeper prepared a Trial Balance and then reviewed the accounts. The following items became apparent upon review of the accounts in the trial balance: 1. The office supplies on hand were counted and a value of $100 was attributed to the remaining items. 2. The prepaid rent was $1,200 for 3 months rent paid on May 1, 2020. 3. The equipment was purchased on January 1, 2020, and has a 5-year life. 4. Salaries earned but not yet paid amount to $350. 5. Services to clients that have been completed but not yet billed total $2,000. 6. Received a telephone bill for $200. 7. The unearned revenue was for an order paid by a customer for parts. $1,000 of the order has been shipped to the customer. Prepare the adjusting entries for the Items 1-7 above. Adjusting Entries Date Debit Credit 31-May 31-May 31-May 31-May 31-May 31-May 31-May Account Title Trial Balance Adjustments Adjusted Trial Balance Income Summary Balance Sheet DR CR DR CR DR CR DR CR DR CR Cash 6155 Account Receivable 5000 Inventory 750 Office Supplies 600 Prepaid Rent 1200 Equipment 6000 Accumulated Amortization Salary Payable Account Payable 3350 Unearned Revenue 1500 Joe Clark, Capital 14950 Joe Clark, Withdrawals 625 Sales 8000 Sales Returns 200 Cost of Goods Sold 5500 Salaries Expense 1300 Advertising Expense 250 Telephone Expense 220 27800 27800 Amortization expense Rent Expense Supplies Expense Total/Subtotal Net Income/Loss Total/Subtotal Post the adjusting entries to the Worksheet below. Complete the Adjusted Trial Balance on the Worksheet. Complete the Income Summary on the Worksheet. Complete the Balance Sheet on the Worksheet. Prepare in Good Form, a Multi-Step Income Statement, A Statement of Equity, and a Classified Balance Sheet. Statement of Equity CLASSIFIED Balance Sheet Prepare the Closing Entries.

Joe Clark has his own Desktop Publishing business. In May, you as the bookkeeper prepared a Trial Balance and then reviewed the accounts.

The following items became apparent upon review of the accounts in the trial balance:
1. The office supplies on hand were counted and a value of $100 was attributed to the remaining items.
2. The prepaid rent was $1,200 for 3 months rent paid on May 1, 2020.
3. The equipment was purchased on January 1, 2020, and has a 5-year life.
4. Salaries earned but not yet paid amount to $350.
5. Services to clients that have been completed but not yet billed total $2,000.
6. Received a telephone bill for $200.
7. The unearned revenue was for an order paid by a customer for parts. $1,000 of the order has been shipped to the customer.

Prepare the adjusting entries for the Items 1-7 above.

Adjusting Entries
Date Debit Credit
31-May
31-May
31-May
31-May
31-May
31-May
31-May

Account Title
Trial Balance
Adjustments
Adjusted Trial Balance
Income Summary
Balance Sheet
DR
CR
DR
CR
DR
CR
DR
CR
DR
CR

Cash
6155
Account Receivable
5000
Inventory
750
Office Supplies
600
Prepaid Rent
1200
Equipment
6000
Accumulated Amortization
Salary Payable
Account Payable
3350
Unearned Revenue
1500
Joe Clark, Capital
14950
Joe Clark, Withdrawals
625
Sales
8000
Sales Returns
200
Cost of Goods Sold
5500
Salaries Expense
1300
Advertising Expense
250
Telephone Expense
220
27800
27800
Amortization expense
Rent Expense
Supplies Expense
Total/Subtotal
Net Income/Loss
Total/Subtotal

Post the adjusting entries to the Worksheet below.

Complete the Adjusted Trial Balance on the Worksheet.

Complete the Income Summary on the Worksheet.

Complete the Balance Sheet on the Worksheet.

Prepare in Good Form, a Multi-Step Income Statement, A Statement of Equity, and a Classified Balance Sheet.

Statement of Equity

CLASSIFIED Balance Sheet

Prepare the Closing Entries.

Added by Rachel D.