P3-45

This problem continues the Daniels Consulting situation from Problem P2-41 of Chapter 2. You will need to use the unadjusted trial balance and posted T-accounts that you prepared in Problem P2-41. The unadjusted trial balance at December 31, 2016, is duplicated below:

At December 31, the business gathers the following information for the adjusting entries

Accrued service revenue, $1,500.

Earned $600 of the service revenue collected in advance on December 21.

Office supplies on hand, $300.

Depreciation on equipment, $60; Depreciation on furniture, $50.

Accrued $685 expense for administrative assistant’s salary.

Requirements

1. Journalize and post the adjusting entries using the T-accounts that you completed in Problem P2-41. In the T-accounts, denote each adjusting amount as Adj. and an account balance as Balance.

2. Prepare an adjusted trial balance as of December 31, 2016.