End of Chapter Problem 4.6

End of Chapter Problem 4.6
The trial balance of Chelsea Elliott, marketing services provider, at 30 June 2015 was as
follows:
Chelsea Elliott, Marketing Services
Unadjusted trial balance
as at 30 June 2015
Account Debit Credit
Cash at bank $9,020
Accounts receivable 25,170
GST receivable 3,020
Prepaid rent 2,440
Prepaid insurance 3,170
Office supplies 4,660
Office equipment 14,150
Accumulated depreciation ― office
equipment $2,870
Accounts payable 3,250
Unearned fees 1,280
Loan payable ― due 2015 10,670
GST payable 9,350
C Elliott, capital 19,260
C Elliott, drawings 60,320
Fees revenue 160,530
Salaries expense 66,350
Telephone expense 7,080
Rent expense 11,830
$207,210 $207,210
Don't show me this message again for the assignment
(a)
Using the following information, prepare adjusting entries. Use the accounts shown in the
trial balance and these additional accounts: salaries payable, interest payable,
telephone account payable, depreciation expense, office supplies expense,
insurance expense, interest expense.
(Enter debit entries first, followed by credit entries. Credit account titles are
automatically indented when the amount is entered. Do not indent manually.
Round answers to 0 decimal places, e.g. 1,525.)
1. Interest expense of $600 has accrued on the loan payable.
2. A physical count of office supplies on 30 June shows $650 of unused supplies on hand.
3. Depreciation of the office equipment this year is estimated to be $1,180.
quest2871131en quest2871131 asnmt2437477 take-question
a

4. Half the amount in the unearned fees account had been earned by the end of the year.
5. The amount in the prepaid rent account covers this June and the next 2 months.
6. Of prepaid insurance, 60% expired this period.
7. Salaries expense accrued for the last 4 days in June amounts to $1,930.
8. The telephone expense for June of $780 has not been recorded or paid. No tax invoice
has been issued.
Chelsea Elliott, Marketing Services
General journal — adjusting entries
Date
30 June
2015
Particulars Debit Credit
1.
(Accrued interest on loan payable)
2.
(Office supplies used)
3.
(Depreciation on office equipment)
4.
(Fees revenue received previously, now earned)
5.
(Rent expense for June)
6.
(Insurance prepaid now expired)
Interest expense 600
Interest payable 600
Office supplies expense 650
Office supplies 650
Depreciation expense ? office equipment 1180
Accumulated depreciation ? office equipment 1180
Unearned fees 640
Fees revenue 640
Rent expense 813
Prepaid rent 813
Insurance expense 2536
Prepaid insurance 2536