ch03(1) - CHAPTER 3 PROBLEMS SET B P3-1B Jason Elsner started his own consulting firm Elsner Company on June 1 2017 The trial balance at June 30 is

ch03(1) - CHAPTER 3 PROBLEMS SET B P3-1B Jason Elsner...

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CHAPTER 3 PROBLEMS: SET B P3-1B Jason Elsner started his own consulting firm, Elsner Company, on June 1, 2017. The trial balance at June 30 is shown below. ELSNER COMPANY Trial Balance June 30, 2017 Account Number Debit Credit 101 Cash $ 7,150 112 Accounts Receivable 6,000 126 Supplies 2,000 130 Prepaid Insurance 3,000 157 Equipment 15,000 201 Accounts Payable $ 4,500 209 Unearned Service Revenue 4,000 301 Owner’s Capital 21,750 400 Service Revenue 7,900 726 Salaries and Wages Expense 4,000 729 Rent Expense 1,000 $38,150 $38,150 In addition to those accounts listed on the trial balance, the chart of accounts for Elsner Company also contains the following accounts and account numbers: No. 158 Accumu- lated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 732 Utilities Expense. Other data: 1. Supplies on hand at June 30 are $750. 2. A utility bill for $150 has not been recorded and will not be paid until next month. 3. The insurance policy is for a year. 4. $2,800 of unearned service revenue is recognized for services performed during the month. 5. Salaries of $1,900 are accrued at June 30. 6. The equipment has a 5-year life with no salvage value. It is being depreciated at $250 per month for 60 months. 7. Invoices representing $1,200 of services performed during the month have not been recorded as of June 30. Instructions (a) Prepare the adjusting entries for the month of June. Use J3 as the page number for your journal. (b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column. (c) Prepare an adjusted trial balance at June 30, 2017. Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance. (LO 2, 3, 4) (c) Adj. trial balance $41,650
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2 3 Adjusting the Accounts P3-2B Maquoketa River Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows.
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  • Winter '17
  • Dr. Mahwish Anjum
  • Balance Sheet, Revenue, Generally Accepted Accounting Principles, 1973, s Capital

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