129) The December 31, 2010, trial balance of Sable Inc. included the following accounts:
Cash$956,000
Accounts receivable$30,000
Unearned service revenue20,000
Supplies13,500
Prepaid insurance12,000
Equipment80,000
Accumulated depreciation-equipment30,000
Salary expense130,000
Additional data:
?An inventory count of supplies indicated $1,500 were still on hand at year end.
?The prepaid insurance represents the annual premium on a policy providing coverage starting July 1, 2010.
?Since the last payday, employees have earned an additional $15,500 which has not yet been paid or recorded.
?Sable Inc has now earned half of the unearned revenue.
?The equipment has an estimated life of 10 years and no expected value at the end of its life.
?Services performed but unbilled and uncollected at year end amount to $9,250.
Prepare the necessary year-end adjusting entries as of December 31, 2010.
130) Pale Ale Ltd. had the following trial balance as of June 30, 2011:
Pale Ale Ltd.
Trial Balance
June 30, 2011
DebitCredit
Cash$10,600
Accounts receivable13,200
Supplies2,400
Prepaid insurance1,500
Equipment38,500
Accumulated depreciation-equipment$8,300
Accounts payable2,500
Unearned service revenue8,900
Common shares15,000
Retained earnings10,100
Service revenue35,000
Salary expense11,200
Utilities expense2,400________
$79,800$79,800
Additional information:
?Supplies used during the month, $450.
?Prepaid insurance expired during the month, $300.
?Depreciation on equipment for the month, $550.
?Unearned service revenue earned during the month, $2,200.
?Accrued salary expense at the end of the month, $650.
Based on the trial balance and the additional data, prepare an adjusted trial balance dated June 30, 2011.
131) Prepare adjusting entries dated December 31, 2010, based on the following data.
a.A two-year insurance policy costing $6,000 was purchased on October 31, 2010.
b.Salaries owed to employees on December 31, 2010, amount to $4,600.
c.The balance in Supplies before adjustment is $2,800. A physical count reveals $900 of supplies on hand on December 31, 2010.
d.Depreciation on office equipment for the year is $1,869.