Required information

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North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.

Account Titles	Debit				Credit
Cash	$	11,700
Accounts Receivable		5,700
Prepaid Rent		2,340
Equipment		20,700
Accumulated Depreciation					$	1,130
Accounts Payable						1,130
Income Tax Payable						0
Common Stock						24,500
Retained Earnings						1,800
Sales Revenue						48,780
Salaries and Wages Expense		24,700
Utilities Expense		12,200
Rent Expense		0
Depreciation Expense		0
Income Tax Expense		0
Totals	$	77,340			$	77,340

Other data not yet recorded at December 31:

Rent expired during the year, $1,170.

Depreciation expense for the year, $1,130.

Utilities used and unpaid, $8,700.

Income tax expense, $360.

T Accounts

Adjusted TB

Summarize the adjusting journal entries in T-accounts. After entering the beginning balances and computing the adjusted ending balances.

Prepaid Rent Rent Expense Beg. Bal. 0 Beg. Bal. 0 1,170 (a) (a) 1,170 0 0 End. Bal. 1,170 End. Bal. 1,170 Accumulated Depreciation Depreciation Expense Beg. Bal. 0 Beg. Bal. 0 1,130 (b) (b) 1,130 0 0 End. Bal. 1,130 End. Bal. 1,130 Accounts Payable Utilities Expense Beg. Bal. 0 1,130 Beg. Bal. 12,200 0 8,700 (c) (c) 8,700 0 0 End. Bal. 9,830 End. Bal. 20,900 Income Tax Payable Income Tax Expense Beg. Bal. 0 Beg. Bal. 0 360 (d) (d) 360 0 0 End. Bal. 360 End. Bal. 360

NORTH STARAdjusted Trial BalanceAs of December 31Account TitlesDebitCreditCash$11,700Accounts Receivable5,700Prepaid Rent1,170Equipment20,700Accumulated Depreciation2,260Accounts Payable9,830Income Tax Payable360Common Stock24,500Retained Earnings1,800Sales Revenue48,780Salaries and Wages Expense24,700Utilities Expense20,900Rent Expense1,170Depreciation Expense1,130Income Tax Expense360Totals$87,530$87,530

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