ABC Organization Unadjusted Trial Balance As of 31 December 2012
Account Codes Dr Cr Cash 10,789
Furniture and fixtures 60,000
Supplies inventory 8,531
Pledged contributions receivable 251,200
Accounts Receivable 1,700
Salary advance 5,000
Salaries 38,689
Prepaid insurance 300
Income from pledged contributions 200,000
Interest income 3,247
Public donations 10,000
Accounts payable 2,921
Fund balance 160,041
Total 376,209 376,209
The following information for unrecorded transactions and internal events is provided as basis for adjusting entries at the end of December 2012:
1) $3,000 of the $5,000 salary advances granted had been earned by staff members during the month of December 2012.
2) The organization received a firm pledge for a contribution of $50,000 from Government X on 30 June 2012 through a field office but this was not yet included in the HQ trial balance.
3) The cost of insurance premium which was paid in advance on 1 July 2012 was for a one year policy. Fifty per cent of the value of the prepaid insurance had expired.
4) The unpaid pledged contribution of $50,000 from Government X was paid in cash on 28 December 2012 through the field office and the Resident Representative sent a fax requesting to have the amount reflected in the statements. The cash contribution was transferred to the Headquarters account by cable.
5) Supplies used during December, $1,300.
6) Wages incurred but not yet paid, $25,000.
7) Depreciation on furniture and fixtures. The organization uses straight-line depreciation (indirect method) on its furniture and fixtures which have an estimated useful life of five years and no salvage value. The furniture was purchased on 1 January 2012. The depreciation has not yet been recorded for the year.
8) Estimated uncollectible accounts receivable is 5% of $1,700.
Part A: Prepare journal entries for the above transactions Part B: Prepare an adjusted trial balance using the format below, adding additional accounts as required