BRIEF EXERCISE 3-3

Dec. 31

Advertising Supplies Expense.............................

Advertising Supplies ($6,700 $2,500)........
4,200

Advertising Supplies
6,700 12/31
4,200
12/31 Bal. 2,500

4,200

Advertising Supplies Expense

12/31
4,200

BRIEF EXERCISE 3-4

Dec. 31

Depreciation ExpenseEquipment.....................
Accumulated Depreciation
Equipment..................................................
4,000

Depr. ExpenseEquipment
12/31
4,000

4,000

Accum. DepreciationEquipment
12/31
4,000

Balance Sheet:
Equipment.............................................................
Less: Accumulated Depreciation.......................
$26,000

$30,000
4,000

BRIEF EXERCISE 3-5

July 1
14,400
Dec. 31

Prepaid Insurance.............................................
Cash...........................................................

14,400

Insurance Expense [($14,400 3) X 1/2].........

Prepaid Insurance.....................................

2,400

Prepaid Insurance

Insurance Expense

2,400

7/1
14,400 12/31
12/31 Bal.12,000

2,400

12/31

2,400

BRIEF EXERCISE 3-6

July 1
14,400
Dec. 31

Cash...................................................................
Unearned Insurance Revenue..................

14,400

Unearned Insurance Revenue.........................

Insurance Revenue...................................

2,400

Unearned Insurance Revenue

12/31
2,400 7/1
14,400
12/31 Bal.12,000

Insurance Revenue
12/31
2,400

DO IT! 3-1
1. (d) 2. (e) 3. (h) 4. (c)
EXERCISE 3-6

2,400

Item

(a)
Type of Adjustment

(b)
Accounts before Adjustment

1.

Accrued Revenues

Assets Understated
Revenues Understated

2.

Prepaid Expenses

Assets Overstated
Expenses Understated

3.

Accrued Expenses

Expenses Understated
Liabilities Understated

4.

Unearned Revenues

Liabilities Overstated
Revenues Understated

5.

Accrued Expenses

Expenses Understated
Liabilities Understated

6.

Prepaid Expenses

Assets Overstated
Expenses Understated

PROBLEM 3-1B
(a)
Date
Account Titles
2012
May 31 Supplies Expense................................
Supplies......................................

Ref.

Debit

631
126

900

31 Utilities Expense..................................
Utilities Payable..........................

736
229

250

31 Insurance Expense..............................
Prepaid Insurance......................
($3,600 24 months)

722
130

150

31 Unearned Service Revenue................

Service Revenue........................
($2,000 $400)

209
400

1,600

31 Salaries Expense.................................
Salaries Payable.........................
[(3/5 X $900) X 2 employees]

726
212

1,080

31 Depreciation Expense.........................
Accumulated Depreciation
Ofce Furniture.......................
($11,400 60 months)

717

190

31 Accounts Receivable..........................

112

150

J4
Credit
900
250
150

1,600

1,080

190
1,700

Service Revenue........................

(b)
Cash
Date
Explanation
2012
May 31 Balance
Accounts Receivable
Date
Explanation
2012
May 31 Balance
31 Adjusting
Supplies
Date
Explanation
2012
May 31 Balance
31 Adjusting
Prepaid Insurance
Date
Explanation
2012
May 31 Balance
31 Adjusting
Ofce Furniture

Ref.

400

Debit

1,700

Credit

4,500

Ref.

J4

Ref.

Debit

J4

Credit

No. 112
Balance

1,700

6,000
7,700

Debit

Credit

No. 126
Balance

900

1,900
1,000

Credit

No. 130
Balance

150

3,600
3,450

J4

Ref.

No. 101
Balance

Debit

No. 149

Date
Explanation
2012
May 31 Balance

Ref.

Debit

Unearned Service Revenue

Date
Explanation
2012
May 31 Balance
31 Adjusting
Salaries Payable
Date
Explanation
2012
May 31 Adjusting

Utilities Payable
Date
Explanation
2012
May 31 Adjusting
F.Omiyale, Capital
Date
Explanation

Ref.

Balance
11,400

Accumulated DepreciationOfce Furniture

Date
Explanation
Ref.
Debit
2012
May 31 Adjusting
J4
Accounts Payable
Date
Explanation
2012
May 31 Balance

Credit

Debit

Credit

No. 150
Balance

190

190

Credit

No. 201
Balance

4,500

Ref.

No. 209
Balance

J4

Ref.

Debit
1,600

2,000
400

Debit

Credit

No. 212
Balance

1,080

1,080

Credit

No. 229
Balance

250

250

Credit

No. 301
Balance

J4

Ref.

Debit

J4

Ref.

Credit

Debit

2012
May 31 Balance

Service Revenue
Date
Explanation
2012
May 31 Balance
31 Adjusting
31 Adjusting
Supplies Expense
Date
Explanation
2012
May 31 Adjusting
Depreciation Expense
Date
Explanation
2012
May 31 Adjusting
Insurance Expense
Date
Explanation
2012
May 31 Adjusting
Salaries Expense
Date
Explanation
2012
May 31 Balance
31 Adjusting

17,700

Ref.

Debit

J4
J4

Ref.
J4
Ref.
J4

Ref.
J4

Ref.

J4

Debit

Credit

No. 400
Balance

1,600
1,700

7,500
9,100
10,800

Credit

No. 631
Balance

900

900

Debit

No. 717
Balance

Credit

190

190

Debit

No. 722
Balance

Credit

150

Debit
1,080

150

Credit

Balance
3,400
4,480

Rent Expense
Date
Explanation
2012
May 31 Balance
Utilites Expense
Date
Explanation
2012
May 31 Adjusting
(c)

Ref.

Debit

Credit

900

Ref.
J4

No. 729
Balance

Debit

Credit

250

No. 736
Balance
250

OMIYALE CONSULTING
Adjusted Trial Balance
May 31, 2012

Cash......................................................................
Accounts Receivable..........................................
Prepaid Insurance...............................................
Supplies................................................................
Ofce Furniture....................................................
Accumulated DepreciationOfce
Furniture...........................................................
Accounts Payable................................................
Utilities Payable...................................................
Salaries Payable..................................................
Unearned Service Revenue................................
K. Ham, Capital....................................................
Service Revenue..................................................
Salaries Expense.................................................
Rent Expense.......................................................
Depreciation Expense.........................................
Insurance Expense..............................................
Utilities Expense..................................................
Supplies Expense................................................

Debit
$4,500
7,700
3,450
1,000
11,400

4,480
900
190
150
250
900
$34,920

Credit

$ 190
4,500
250
1,080
400
17,700
10,800

$34,920