70.2K

Verified Solution

Link Copied!

Garvey Companys unadjusted trial balance includes the following account balances as of December 31, 2015: Debits Credits Cash $ 69,290 Accounts receivable 118,100 Interest receivable 1,360 Supplies 140,700 Prepaid insurance 8,850 Notes Receivable (short-term) 50,900 Equipment 282,000 Accumulated DepreciationEquipment $ 65,400 Accounts payable 105,600 Salaries and Wages Payable 21,900 Unearned revenue 9,500 Notes Payable (long-term) 88,600 Common Stock 219,400 Retained earnings 145,600 Service revenue 41,100 Interest revenue 22,200 Supplies Expense 0 Repair and Maintenance Expense 26,850 Rent Expense 18,100 Depreciation Expense 0 Insurance Expense 0 Salaries and Wages Expense 3,150 Totals $ 719,300 $ 719,300

The following data are available to determine adjusting entries: A) Insurance purchased at the beginning of July for $8,850 provided coverage for twelve months (July 2015 through June 2016). The insurance coverage for July through December totaling $4,425 has now been used. B) The company estimates $8,300 in depreciation each year. C) Account showed $87,200 of supplies on hand at the end of the year. D) An additional $290 of interest has been earned but has not yet been uncollected on the outstanding notes receivable. E) Services in the amount of $5,750 were performed for customers who had previously paid in advance. F) Services in the amount of $2,300 were performed; these services have not yet been billed or recorded.

Required:
a.	Prepare the adjusting entries that are required at the end of the period b. Prepare an adjusted trial balance by completing the related columns in the table below.

Answer & Explanation Solved by verified expert

See Answer