Adjusting entries
Timken Company specializes in the repair of music equipment and is owned and operated by Secilia Timken. On April 30, 2012, the end of the current year, the accountant for Timken Company prepared the following trial balances:
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Timken Company
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Trial Balance
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April 30, 2012
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Unadjusted
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Adjusted
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Debit
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Credit
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Debit
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Credit
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Balances
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Balances
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Balances
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Balances
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Cash
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38,250
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38,250
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Accounts Receivable
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109,500
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109,500
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Supplies
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11,250
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3,500
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Prepaid Insurance
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14,250
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2,700
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Equipment
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360,450
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360,450
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Accumulated Depreciation-Equipment
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94,500
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107,000
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Automobiles
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109,500
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109,500
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Accumulated Depreciation-Automobiles
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54,750
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57,500
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Accounts Payable
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24,930
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26,000
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Salaries Payable
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-
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7,500
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Unearned Service Fees
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18,000
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6,000
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Secilia Timken, Capital
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394,020
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394,020
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Secilia Timken, Drawing
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75,000
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75,000
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Service Fees Earned
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733,800
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745,800
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Salary Expense
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516,900
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524,400
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Rent Expense
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54,000
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54,000
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Supplies Expense
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-
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7,750
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Depreciation Expense-Equipment
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-
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12,500
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Depreciation Expense-Automobiles
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-
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2,750
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Utilities Expense
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12,900
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13,970
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Taxes Expense
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8,175
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8,175
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Insurance Expense
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-
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11,550
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Miscellaneous Expense
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9,825
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9,825
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1,320,000
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1,320,000
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1,343,820
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1,343,820
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Instructions
Journalize the seven entries that adjusted the accounts at June 30. None of the accounts were affected by more than one adjusting entry.