Writing Service-Preparing Adjusting Entries in a Worksheet
Preparing Adjusting Entries in a Worksheet
Following is the unadjusted trial balance of Baltimore Rentals Corporation at the end of its first year of operations, December 31, 20X5:
AccountDebitCreditCash3,300Accounts receivable4,000Supplies500Truck8,000Acc. dep. – truck0Accounts payable5,000Unearned rent revenue2,400Income taxes payable0Capital Stock7,000Dividends1,000Rent earned16,000Commissions expense1,000Depreciation expense-truck0Supplies expense0Salaries expense7,000Telephone expense0Income tax expense0Rent expense5,60030,40030,400
The following additional information is available:
A physical count indicates that $300 of supplies is still on hand at December 31.
The truck was purchased on July 1; it has an estimated useful life of 4 years.
The balance in the Unearned Rent Revenue account represents six months’ rental of warehouse space, effective October 1.
A $100 bill for December telephone charges has not yet been recorded.
Income taxes expense for the year is $300. This amount will be paid in the next fiscal year.
