Question: The unadjusted trial balance and information for the accounting adjustments of Noseworthy Investigators follow. Each team member involved in this project is to assume one of the four responsibilities listed. After completing each of these responsibilities, the team should work together to prove the accounting equation utilizing information from teammates (1 and 4). If your equation does not balance, you are to work as a team to resolve the error. The team's goal is to complete the task as quickly and accurately as possible.
Additional Year-End Information
a. Insurance that expired in the current period amounts to $1,200.
b. Equipment depreciation for the period is $3,000.
c. Unused supplies total $4,000 at period-end.
d. Services in the amount of $500 have been provided but have not been billed or collected. Responsibilities for Individual Team Members
1. Determine the accounts and adjusted balances to be extended to the balance sheet columns of the work sheet for Noseworthy. Also determine total assets and total liabilities.
2. Determine the adjusted revenue account balance and prepare the entry to close this account.
3. Determine the adjusted account balances for expenses and prepare the entry to close these accounts.
4. Prepare T-accounts for both D. Noseworthy, Capital (reflecting the unadjusted trial balance amount) and Income Summary. Prepare the third and fourth closing entries. Ask teammates assigned to parts 2 and 3 for the postings for Income Summary. Obtain amounts to complete the third closing entry and post both the third and fourth closing entries. Provide the team with the ending capital account balance.
5. The entire team should prove the accounting equation using post-closing balances.