Accounting Adjusting Entries, Posting, and Preparing an Adjusted Trial Balance for Masasi Company, Inc

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Accounting Adjusting Entries, Posting, and Preparing an AdjustedTrial Balance for Masasi Company, Inc.Accounting Adjusting Entries, Posting and Preparing an Adjusted Trial BalanceMASASI COMPANY, INC. Trial Balance June 30, 2008 Account Number Debit Credit101 Cash $ 7,150 112 Accounts Receivable 6,000 126 Supplies 2,000 130 PrepaidInsurance 3,000 157 Office Equipment 15,000 201 Accounts Payable $ 4,500 209Unearned Service Revenue 4,000 311 Common Stock 21,750 400 Service Revenue 7,900726 Salaries Expense 4,000 729 Rent Expense 1,000 Total $38,150 Total $38,150 Inaddition to those accounts listed on the trial balance, the chart of accounts for MasasiCompany,Inc. also contains the following accounts and account numbers:No. 158Accumulated Depreciation—Office Equipment, No. 212 Salaries Payable,No. 244Utilities Payable,No. 631 Supplies Expense,No. 711 Depreciation Expense,No. 722Insurance Expense, and No. 732 Utilities Expense. Other data: 1. Supplies on hand atJune 30 are $600. 2. A utility bill for $150 has not been recorded and will not be paiduntil next month. 3. The insurance policy is for a year. 4. $2,500 of unearned servicerevenue has been earned at the end of the month. 5. Salaries of $2,000 are accrued at June30. 6. The office equipment has a 5-year life with no salvage value. It is beingdepreciated at $250 per month for 60 months. 7. Invoices representing $1,000 of servicesperformed 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 yourjournal. (b) Post the adjusting entries to the ledger accounts. Enter the totals from the trialbalance as beginning account balances and place a check mark in the posting referencecolumn. (c) Prepare an adjusted trial balance at June 30, 2008. Use the templates inAppendix D. Complete all three tabs.(a)J3DateAccount Titles and ExplanationRef.DebitCredit2008June30Supplies Expense...............................................Supplies...................................................($2,000–$600)6311261,4001,40030Utilities Expense................................................Utilities Payable.....................................73224415015030Insurance Expense.............................................Prepaid Insurance..................................($3,000 ÷ 12 months)72213025025030Unearned Service Revenue...............................Service Revenue.....................................2094002,5002,500

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