Asked by Preet Sangha on Jun 04, 2024
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Based on the unadjusted trial balance for Highlight Styling and the adjusting information given below,prepare the adjusting journal entries for Highlight Styling.
Highlight Stylings' unadjusted trial balance\bold{\text{unadjusted trial balance}}unadjusted trial balance for the current year follows:
Additional information:
a.An insurance policy examination showed $1,040 of expired insurance.
b.An inventory count showed $210 of unused shop supplies still available.
c.Depreciation expense on shop equipment,$350.
d.Depreciation expense on the building,$2,020.
e.A beautician is behind on space rental payments,and this $200 of accrued revenues was unrecorded at the time the trial balance was prepared.
f.$800 of the Unearned Rent account balance was still unearned by year-end.
g.The one employee,a receptionist,works a five-day workweek at $50 per day.The employee was paid last week but has worked four days this week for which she has not been paid.
h.Three months' property taxes,totaling $450,have accrued.This additional amount of property taxes expense has not been recorded.
i.One month's interest on the note payable,$600,has accrued but is unrecorded.
Unadjusted Trial Balance
A financial document listing all the accounts and their balances at a particular date, before any adjustments are made.
Depreciation Expense
The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, or obsolescence.
Accrued Revenues
Revenues earned in an accounting period that have not yet been received in cash or recorded at the statement date.
- Learn and execute the preparation processes of journal entries for different accounting operations.
- Understand the significance of precise adjustments to trial balances and their impact on financial statements.
Verified Answer
Learning Objectives
- Learn and execute the preparation processes of journal entries for different accounting operations.
- Understand the significance of precise adjustments to trial balances and their impact on financial statements.
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