| Task 3: After you’ve completed the trial balance, Sophia tells you that a number of internal business transactions occurred during the year but were not recorded. You must use this information to prepare adjusting entries and an adjusted trial balance, which are steps 5 and 6 in the accounting cycle. |
| A. On December 1 received cash of $360 for three months of Cleaning Services beginning December 1. |
| B. HHEC received employee services for the last two days of December amounting to $250, to be paid in Year 2. |
| C. As of December 31, Year 1, HHEC provided 25 hours of cleaning services at $20 per hour to be billed in January Year 2. |
| D. On December 31, Year 1, HHEC recorded depreciation on its Office Equipment of $50 |
| E. On December 31, Year 1, HHEC record depreciation on Building of $1,980 |
| F. On December 31, Year 1, $100 of insurance had been used. |
| G On December 31, Year 1, $400 of supplies had been used |
| HHEC |
| Trial Balance |
| December 31, Year 1 |
| Cash | 6,855 |
| Accounts Receivable | 2,200 |
| Supplies | 2,800 |
| Preapid Insurance | 2,400 |
| Building | 10,000 |
| Office Equipment | 1,800 |
| Accounts Payable | | 1,850 |
| Sisters, Capital | | 15,000 |
| Sisters, Withdrawals | 4,000 |
| Clearning Revenues | | 18,660 |
| Wages Expense | 4,275 |
| Utilities Expense | 985 |
| Miscellaneous Expense | 195 |
| Total | 35,510 | 35,510 |
| ANSWERS |
| Adjusting Entries: |
| Total | - 0 | - 0 |
| HHEC |
| Adjusted Trial Balance |
| December 31, Year 1 |
| Total | 0 | 0 |
Akshansh Mehta
Unit1-Challenge1-Task-3-Edited.xlsx
