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North Star prepared the following unadjusted trial balance at the end of its second year...

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Accounting

North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.

Account Titles Debit Credit
Cash $ 12,200
Accounts Receivable 6,200
Prepaid Rent 2,440
Equipment 21,200
Accumulated Depreciation $ 1,020
Accounts Payable 1,020
Income Tax Payable 0
Common Stock 25,000
Retained Earnings 2,300
Sales Revenue 50,600
Salaries and Wages Expense 25,200
Utilities Expense 12,700
Rent Expense 0
Depreciation Expense 0
Income Tax Expense 0
Totals $ 79,940 $ 79,940

Other data not yet recorded at December 31:

  1. Rent expired during the year, $1,220.
  2. Depreciation expense for the year, $1,020.
  3. Utilities used and unpaid, $9,200.
  4. Income tax expense, $410.

  1. Summarize the adjusting journal entries in T-accounts. After entering the beginning balances and computing the adjusted ending balances, prepare an adjusted trial balance as of December 31.

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