2. $ 7,400
6. 5,000$
c.
The unadjusted trial balance reports dividends payable of $1,000. Thus, none of the
$1,000 dividend has been paid.
Advertising expense (no adjustment required)
Utilities expense (no adjustment required)
PROBLEM 4.5B
b. MARVELOUS MUSIC (concluded)
30 Minutes, Medium
Dec. 31 21,000
Client Fees Earned 21,000
(
(
(
Income Taxes Pa
y
able 2,000
(
earned revenue.
(
PROBLEM 4.6B
MATE EASE
To record Dec. insur. Exp.
(
$19,200 ÷ 6 mo.
)
.
(
(
To record Dec. rent expense
(
$21,900 ÷ 3 mo.
)
.
a.
2015
General Journal
Unearned Member Dues
(Adjusting Entries)
(1)
To convert previousl
y
unearned revenue to
To record incomes taxes accrued in December.
To record office supplies used in December
(
(
(
$2,160 – 440
)
.
1. $ 169,500
Cash
(
no ad
j
ustment required
)
PROBLEM 4.6B
b. MATE EASE (continued)
c. The company is following the realization principle requiring that revenue not be
PROBLEM 4.6
A
MATE EASE (concluded)
60 Minutes, Strong
Dec. 31 1,500
Client Fees Earned 1,500
(
(
(
(
(
(
(
(
To record depreciation expense in December
(
$54,000 x 1/72
)
.
To record office rent in December
(
$1,800 x 1/6
)
.
(
PROBLEM 4.7B
(
STILLMORE INVESTIGATIONS
To record supplies used in Dec.
(
$205 – $110
)
.
Accounts Receivable
a.
(Adjusting Entries)
(1)
(
2015
General Journal
To record accrued revenue in December.
b.
40,585$
3,500 110
PROBLEM 4.7B
STILLMORE INVESTIGATIONS (continued)
STILLMORE INVESTIGATIONS
December 31, 2015
Cash
Adjusted Trial Balance
Accounts receivable
Office supplies
c.
64,000$
700$
9,000 6,075 1,100
e.
1,100$
Insurance expense for 12 months ended Dec. 31, 2015
PROBLEM 4.7B
STILLMORE INVESTIGATIONS (continued)
STILLMORE INVESTIGATIONS
For the Year Ended December 31, 2015
Income Statement
Rent expense
Office supplies expense
Client fees earned
Depreciation expense: office equipment
Insurance expense of $90/month in the last 10 months of the year was $10/month
less than the average monthly cost in the first 2 months of the year ($100 – $90).