Determining Adjusting Entries, Posting to T Accounts, and Preparing an Adjusted Trial Balance
The trial balance for Financial Strategies Service, Inc., on December 31 is presented on the following page.
The following information is also available:
a. Ending inventory of office supplies, $264.
b. Prepaid rent expired, $440.
c. Depreciation of office equipment for the period, $660.
d. Accrued interest expense at the end of the period, $550.
e. Accrued salaries at the end of the period, $330.
f. Service revenue still unearned at the end of the period, $1,166.
g. Service revenue earned but unrecorded, $2,200.
h. Estimated income taxes for the period, $4,000.
Required
1. Open T accounts for the accounts in the trial balance plus the following:
Interest Payable; Salaries Payable; Income Taxes Payable; Office Supplies
Expense; Depreciation Expense–Office Equipment; Interest Expense; and
Income Taxes Expense. Enter the balances shown on the trial balance.
2. Determine the adjusting entries and post them directly to the T accounts.
3. Prepare an adjusted trial balance.
4. User insight: What financial statements do each of the above adjustments affect? What financial statement is not affected
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