Question: Recording Adjusting Entries and Preparing an Adjusted Trial Balance Ninja Sockeye Star, owned by Johnny Chen, had the following unadjusted accounts at the end of its second year of operations ending December 31, 2009. The accounts have normal debit or credit balances.
Other data not yet recorded at December 31, 2009, follow:
a. Rent used during 2009, $1,200.
b. Depreciation expense for 2009, $1,000.
c. Utilities used in 2009 but not yet paid, $9,000.
d. Wages earned by employees in 2009 but not yet paid, $800.
Required: 1. Create T-accounts based on the accounts titles and balances at December 31, 2009.
2. Using the steps outlined in the chapter, (1) identify the type of adjustment of ( a) through ( d ), (2) determine the amount, and (3) prepare the adjusting journal entries required at December 31, 2009.
3. Post the effects of the adjusting journal entries to the T-accounts and prepare an adjusted trial balance as of December 31, 2009.