Adjusting Entries The Wheel Place, Inc., began operations on March 1 to provide automotive wheel...
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Adjusting Entries The Wheel Place, Inc., began operations on March 1 to provide automotive wheel alignment and balancing services. On March 31, 2012, the unadjusted balances of the firm's accounts are as follows THE WHEEL PLACE, INC. Unadjusted Trial Balance March 31, 2012 Debit Credit $1,900 3,820 4,770 3,700 36,180 Cash Accounts Receivable Prepaid Rent Supplies Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Wages Expense Totals 2,510 1,000 38,400 12,360 3,900 554,270 $54,270 The following information is also available 1. The balance in Prepaid Rent was the amount paid on March 1 for the first 5 months rent. 2. Supplies on hand on March 31 were $1,820 3. The equipment, has an estimated life of 3 years 4. Unpaid wages at March 31 were $570 5. Utility services used during March were estimated at $400. A bill is expected early in April 6. The balance in Unearned Service Revenue was the amount received on March 1 from a new car dealer to cover alignment and balancing services on all new cars sold by the dealer in March and April. The Wheel Place agreed to provide the services at a fixed fee of $550 each montlh Required Prepare the adjusting entries needed at March 31 in general journal form
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