Pacific Financial Services Co., which specializes in appliance repair services, is owned…

Pacific Financial Services Co., which specializes in appliance repair services, is owned and operated by Eileen Hastings. Pacific Financial Services Co.'s accounting clerk prepared the unadjusted trial balance at October 31, 2012, shown below. 

 

Pacific Financial Servicies Co.

Unadjusted Trial Balance 

October 31, 2012 

 

                                        Debit Balances                Credit Balances 

Cash . . . . . . . . . . . . . . . . . . . . .10,200 

Accounts Receivable. . . . . . . . . . 34,750 

Prepaid Insurance . . . . . .. . . . . . . 6,000

 

 

  AND SO ON……………………

 

 

 

The data needed to determine year-end adjustments are as follows: 

 

a.  Depreciation of building for the year, $1,900. 

b.  Depreciation of equipment for the year, $2,400. 

c.  Accrued salaries and wages at October 31, $1,375. 

d.  Unexpired insurance at October 31, $2,700. 

e.  Fees earned but unbilled on October 31, $9,400. 

f.  Supplies on hand at October 31, $325. 

g.  Rent unearned at October 31, $1,800. 

 

 

 

Instructions: 

 

1.  Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense„Building; Depreciation Expense„Equipment; and Supplies Expense. 

 

2.  Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.

 

 

 

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