Problem:
The trial balances before and after adjustment for Villa Company at the end of its fiscal year are presented below.
VILLA COMPANY
Trial Balance
August 31, 2006
Before After
Adjustment Adjustment
Dr. Cr. Dr. Cr.
Cash $10,400 $10,400
Accounts Receivable 8,800 9,400
Office Supplies 2,300 700
Prepaid Insurance 4,000 2,500
Office Equipment 14,000 14,000
Accumulated Depreciation?Office Equipment $ 3,600 $ 4,900
Accounts Payable 5,800 5,800
Salaries Payable -0- 1,100
Unearned Rent 1,500 600
Common Stock 10,000 10,000
Retained Earnings 5,600 5,600
Service Revenue 34,000 34,600
Rent Revenue 11,000 11,900
Salaries Expense 17,000 18,100
Office Supplies Expense -0- 1,600
Rent Expense 15,000 15,000
Insurance Expense -0- 1,500
Depreciation Expense -0- 1,300
= $71,500 =$71,500 =$74,500 =$74,500
Instructions:
Prepare the adjusting entries that were made.