ACCT2001 Computer Services (Jack Smith) Week 3 Chapter 3 Adjustments and Financial Statements

Requirements:

A. Calculate the amounts of the adjusting entries and enter them in the adjustments column. 
B. Enter the amounts in the adjusted trail balance column. 
C. Prepare the Income Statement 
D. Prepare the Statement of Owner's Equity 
E. Prepare the Balance Sheet

Given:

Jack Smith opened a new business on July 1. The name of the company is Computer Services.
The unadjusted trial balance as of July 31 is presented below.

Additional information:

1 An analysis of Prepaid Insurance shows that $75 of coverage has expired.
2 An inventory count shows that supplies costing $450 are available at the end of the month
3 Monthly depreciation on the equipment is $100.
4 On July 1 Computer Services rented part of their office for three months collecting $525.
5 Salary expense of $800 have been incurred but are not paid as of July 31.
6 Jack determined that there are $700 of revenues earned but not recorded as of July 31.
7 Electric used during the month but not recorded was $122.

Unadjusted
Trial Balance

                       Dr.              Cr.
Cash            3,600

Accounts Receivable  2,150
Supplies    800
Prepaid Insurance  450
Equipment   6,000
Accumulated Depreciation - Equip 0
Accounts Payable                 460
Salaries Payable                    0
Unearned Rent Revenue       525
Jack Smith, Capital            10,000
Jack Smith, Drawing 750
Service Revenue                 5,365
Rental Revenue                       0
Depreciation Expense  0
Insurance Expense 0
Rent Expense   700
Salaries Expense 1,900
Supplies Expense   0
Utilities Expense   0

Totals     16,350       16,350