P3-36A Journalizing and posting adjustments to the four-column accounts and preparing an adjusted
trial balance
Learning Objectives 3, 4
3. Adjusted trial balance $572,040 total
The unadjusted trial balance of Guthrie Inn Company at December 31, 2018, and the data needed for the
adjustments follow.
Adjustment data at December 31 follow:
a. As of December 31, Guthrie had $700 of Prepaid Insurance remaining.
b. At the end of the month, Guthrie had $500 of office supplies remaining.
c. Depreciation on the building is $1,200.
d. Guthrie pays its employees weekly on Friday. Its employees earn $1,800 for a five-day workweek.
December 31 falls on Wednesday this year.
e. On November 20, Guthrie contracted to perform services for a client receiving $3,600 in advance.
Guthrie recorded this receipt of cash as Unearned Revenue. As of December 31, Guthrie has $1,600 still
unearned.
Requirements
1. Journalize the adjusting entries on December 31.
2. Using the unadjusted trial balance, open the accounts (use a four-column ledger) with the unadjusted
balances. Post the adjusting entries to the ledger accounts.
3. Prepare the adjusted trial balance.
4. Assuming the adjusted trial balance has total debits equal to total credits, does this mean that the
adjusting entries have been recorded correctly? Explain.
SOLUTION
Requirement 1
P3-36A, cont.
Requirement 2
P3-36A, cont.
Requirement 3
P3-37A Using the worksheet to record the adjusting journal entries
Learning Objective 6
Greavy Theater Production Company’s partially completed worksheet as of December 31, 2018, follows.
Adjustment data at December 31 follow:
a. As of December 31, Greavy had performed $500 of service revenue but has not yet billed customers.
b. At the end of the month, Greavy had $700 of office supplies remaining.
c. Prepaid Insurance of $3,900 remained.
d. Depreciation expense, $4,000.
e. Accrued salaries expense of $200 that hasn’t been paid yet.
Requirements
1. Complete the worksheet. Use letters a through e to label the five adjustments.
2. Journalize the adjusting entries.
SOLUTION
Requirement 1
P3-37A, cont.
Requirement 2