The ledger of Laurie Tour Service on March 31 of the current year includes the...
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Accounting
The ledger of Laurie Tour Service on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared Debit Credit 20,000 10,000 6,000 4,000 60,000 Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation-Equipment Common Stock Notes Payable Unearned Service Revenue Service Revenue Interest Expense Salaries and Wages Expense 6,000 50,000 10,000 10,000 44,000 0 20,000 An analysis of the accounts shows the following 1. The equipment depreciates $600 per month. 2. Two-thirds of the uneanedservice revenue was earned during the quarter 3. The note payable is dated January 1 and bears 12% interest. 4. Supplies on hand total $3,000 5. The insurance policy is a one-year policy dated January 1 Instructions a. Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense b. Prepare Adjusted Trial Balance c. Prepare Income Statement
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