Problem 2
Manar Company has the following unadjusted trial balance at 31 December 2020.
Manar Company
Unadjusted Trial Balance
December 31, 2020
Accounts
Debit
Credit
Cash
25,000
Accounts Receivable
12,000
Supplies
3,500
Prepaid Rent
6,000
Prepaid Insurance
1,200
Accounts Payable
5,700
Unearned Revenue
13,000
Manar, Capital
30,000
Manar, Drawings
5,000
Service Revenue
Salaries Expense
9,000
Advertising Expense
1,500
Utilities Expense
4,000
Miscellaneous Expense
6,500
Total
73,700
Additional information:
1. Insurance expense for the year, OMR400
2. Supplies on hand at 31 December, OMR 1,200
3. Rent expense for the year, OMR 4,000
4. Salaries accrued but not yet paid on December 31, OMR 600
5. Service revenues earned but not yet recorded at 31 December 2017, OMR 5,000
6. Unearned revenues at December 31, is OMR 5,000.
Required:
A. Prepare the necessary adjusting entries on 31 December 2020.
B. Determine the balance of the accounts affected by the adjusting entries and prepare the adjusted trial balance.
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