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Jackson Consulting

Unadjusted Trial Balance December 31, 2018

Debits Credits

Cash $ 11,500

Accounts Receivable 3,500

Supplies 1,200

Prepaid Rent 24,000

Equipment 14,000

Accumulated Depreciation $1,400

Accounts Payable 1,900

Unearned Service Revenue 2,800

Common Stock 10,300

Retained Earnings 7,500

Dividends 4,500

Service Revenue 91,350

Salaries Expense 55,000

Advertising Expense 900

Utilities Expense 650

Total: Debits =$115,250 Credits total = $115,250

Additional Information:

1.) The equipment was purchased on January 1, 2017. The useful life is estimated to be 10 years.

2.) As of December 31, 2018, the company had accrued salaries of $950.

3.) Of the balance in the unearned revenue account, $500 had not been earned by year -end.

4.) On December 1, 2018, the company paid $900 for four months of advertising.

5.) A count of supplies on December 31, 2018 showed $400 of supplies had been used during the year.

6.) On May 1, 2018, the company rented an office building for one year and paid $24,000 in cash.

The adjusting journal entry to record (f) above would include:

	A.	a debit to rent expense for $10,000
	B.	a debit to prepaid rent for $16,000
	C.	a credit to rent expense for $10,000
	D.	a credit to cash for $16,000
	E.	a credit to prepaid rent for $16,000

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