Axia College Material

Appendix D
Adjusting Entries, Posting, and Preparing an Adjusted Trial Balance
Adjusting Entries
Use this General Journal to record adjusting entries on June 30, 2008 for Masasi Company, Inc. The first few
lines are completed for you.

GENERAL JOURNAL J3
DATE ACCOUNT TITLE AND EXPLANATION REF. DEBIT CREDIT
June 30 Supplies Expense 631 $1,400
Supplies ($2000 - $600) 126 $1,400
30 Utilites Expense 732 $150
Utilites Payable 244 $150
30 Insurance Expense 722 $250
Prepaid Insurance 130 $250
30 Unearned Service Revenue 209 $2,500
Service Revenue 400 $2,500
30 Salaries Expense 726 $2,000
Salaries Payable 212 $2,000
30 Depreciation Expense 711 $250
Accumulated Depreciation - Office Equipment 158 $250
30 Accounts Receivable 112 $1,000
Service Revenue 400 $1,000

a) Adjust Entries
Axia College Material
Appendix D
Adjusting Entries, Posting, and Preparing an Adjusted Trial Balance
Posting Entries

Use this General Ledger to post adjusting entries to all 18 ledger accounts for Masasi Company, Inc. The first two accounts are
completed for you. Make sure you: a) Fill in the correct information, including account titles and numbers for the remaining
accounts; and b) Place a check mark in the reference column, when applicable. You can copy the check mark in the Cash acco
and paste it when you want to use it.

GENERAL LEDGER

Account: Cash
DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Balance √ $7,150

Account: Accounts Receivable

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Balance √ $6,000
30-Jun-2008 Adjusting J3 $1,000

Account: Supplies
DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Begginning Supply Balance √ $2,000
30-Jun-2008 Supplies used in June $1,400

Account: Prepaid Insurance

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Prepaid Insurance √ $3,000
30-Jun-2008 Prepaid Insurance Adjustment J3 $250

Account: Office Equipment

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Office equipment New √ $15,000

Account: Accumulated Depreciation-Office Equipment

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Office equipment depreciation $250

b) Post to Ledger Accounts

Account: Accounts Payable
DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Beginning Accounts Payable Balance √ $4,500

Account: Unearned Service Revenue

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Unearned Service Rev beginning bal √ $4,000
30-Jun-2008 Unearned Service Rev. earned J3 $2,500

Account: Salaries Payable

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Salaries paid J3 $2,000

Account: Utilities Payable

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Utility bill for June not paid J3 $150

Account: Common Stock

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Common Stock Beginning Bal √ $21,750

Account: Service Revenue

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Service Revenue Beginning Bal √ $7,900
30-Jun-2008 Service Revenue Earned J3 $2,500
30-Jun-2008 Service Revenue for June invoice not recorded J3 $1,000

Account: Supplies Expenses

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Supplies used in June J3 1,400

b) Post to Ledger Accounts

Account: Depreciation Expenses
DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Office equipment depreciation J3 $250

Account: Insurance Expenses

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Monthly insurance cost J3 $250

Account: Salary Expenses

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Salary Expenses Beginning Balance √ $4,000
30-Jun-2008 Salary Accured J3 $2,000

Account: Rent Expenses

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Rent Expenses Beginning Bal √ $1,000

Account: Utilities Expenses

DATE EXPLANATION REF. DEBIT CREDIT
30-Jun-2008 Utility Bill for June J3 $150

b) Post to Ledger Accounts

 Appendix D
paring an Adjusted Trial Balance

18 ledger accounts for Masasi Company, Inc. The first two accounts are
t information, including account titles and numbers for the remaining
column, when applicable. You can copy the check mark in the Cash account

No. 101
BALANCE
$7,150

No. 112
BALANCE
$6,000
$7,000

No. 126
BALANCE
$2,000
$600

No. 130
BALANCE
$3,000
$2,750

No. 157
BALANCE
$15,000

No. 158
BALANCE
$250

b) Post to Ledger Accounts

No. 201
BALANCE
$4,500

No. 209
BALANCE
$4,000
$1,500

No. 212
BALANCE
$2,000

No. 244
BALANCE
$150

No. 311
BALANCE
$21,750

No. 400
BALANCE
$7,900
$10,400
$11,400

No. 631
BALANCE
1,400

b) Post to Ledger Accounts

No. 711
BALANCE
$250

No. 722
BALANCE
$250

No. 726
BALANCE
$4,000
$6,000

No. 729
BALANCE
$1,000

No. 732
BALANCE
$150

b) Post to Ledger Accounts

Axia College Material
Appendix D

Adjusting Entries, Posting, and Preparing an Adjusted Trial Balance

Prepare Adjusted Trial Balance

Use this Trial Balance template to prepare an adjusted trial balance for Masasi Company, Inc. at June 30,
2008. You can place summation formulas at the end of the Debit and Credit columns to compute debit and
credit totals. Otherwise, you can compute totals using a calculator, then enter totals directly.

MASASI COMPANY, INC.

Adjusted Trial Balance
30-Jun-08
ACCOUNTS DEBIT CREDIT
Cash $7,150
Accounts Receivable $7,000
Supplies $600
Prepaid Insurance $2,750
Office Equipment $15,000
Accumulated Depreciation of office equipment $250
Accounts Payable $4,500
Unearned Service Revenue $1,500
Salaries Payable $2,000
Utilities Payable $150
Common Stock $21,750
Service Revenue $11,400
Supplie Expenses $1,400
Depreciation Expenses $250
Insurance Expenses $250
Salary Expenses $6,000
Rent Expenses $1,000
Utilities Expenses $150
Totals $41,550 41,550

c) Prepare Adjusted Trial Bal.