90.2K

Verified Solution

Link Copied!

Meowmeow is operating her own clinic business, TH Chamber. The trial balance for TH Chamber on January 31, 2021 is shown below. The company prepares monthly financial statements.

Account Titles . . . . . . . . . . . . . Debit ($) . . . . . . . . . . . Credit ($)

Cash. . . . . . . . . . . . . . . . . . . . . . .10960

Accounts Receivable . . . . . . . . 2300

Supplies . . . . . . . . . . . . . . . . . . . 2500

Prepaid Insurance . . . . . . . . . . . 2700

Equipment . . . . . . . . . . . . . . . . . 8000

Furniture. . . . . . . . . . . . . . . . . . . 6600

Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4300

Unearned Service Revenue . . . . . . . . . . . . . . . . . . . . . . . . 3000

Owner's Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20000

Service Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7400

Salaries Expense . . . . . . . . . . . . 7800

Utilities Expense . . . . . . . . . . . . 140

Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6300

Total . . . . . . . . . . . . . . . . . . . . . . 41000 . . . . . . . . . . . . . . . 41000

Instructions: Prepare the adjusting entries of the following for the month of January 2021.

Adjustment 1.

1. Annual depreciation on the equipment is $492. The equipment was purchased on January 1, 2020.

Account to be debited is ______ ?

Account to be credited is ______ ?

Amount is $ ________ ?

Adjustment 2.

2. Rent expense incurred but not paid on January 31, 2021 totalled $2330.

Account to be debited is ______ ?

Account to be credited is ______ ?

Amount is $ ________

Adjustment 3.

3. The annual loan interest rate is 13% (The loan was taken on December 1, 2020).

Account to be debited is ______ ?

Account to be credited is ______ ?

Amount is $ ________ ?

Adjustment 4.

4. There are five salaried employees in the company. Salaries are paid every Thursday for the current week. The five employees receive a salary of $800 each per week. Employees work five days a week (Sunday to Thursday) and they do not work on weekends (Friday and Saturday). Assume January 31 is a Tuesday. All the employees work through January 31st.

Account to be debited is ______ ?

Account to be credited is ______ ?

Amount is $ ________ ?

Adjustment 5.

5. Invoices representing $4500 of services performed during the month have not been recorded as of January 31, 2021.

Account to be debited is ______ ?

Account to be credited is ______ ?

Amount is $ ________ ?

Answer & Explanation Solved by verified expert

See Answer