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Jackson Consulting
Unadjusted Trial Balance December 31, 2018
Debits Credits
Cash $ 11,500
Accounts Receivable 3,500
Supplies 1,200
Prepaid Rent 24,000
Equipment 14,000
Accumulated Depreciation $1,400
Accounts Payable 1,900
Unearned Service Revenue 2,800
Common Stock 10,300
Retained Earnings 7,500
Dividends 4,500
Service Revenue 91,350
Salaries Expense 55,000
Advertising Expense 900
Utilities Expense 650
Total: Debits =$115,250 Credits total = $115,250
Additional Information:
1.) The equipment was purchased on January 1, 2017. The useful life is estimated to be 10 years.
2.) As of December 31, 2018, the company had accrued salaries of $950.
3.) Of the balance in the unearned revenue account, $500 had not been earned by year -end.
4.) On December 1, 2018, the company paid $900 for four months of advertising.
5.) A count of supplies on December 31, 2018 showed $400 of supplies had been used during the year.
6.) On May 1, 2018, the company rented an office building for one year and paid $24,000 in cash.
The adjusting journal entry to record (f) above would include:
| | A. | a debit to rent expense for $10,000 |
| | B. | a debit to prepaid rent for $16,000 |
| | C. | a credit to rent expense for $10,000 |
| | D. | a credit to cash for $16,000 |
| | E. | a credit to prepaid rent for $16,000 |
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