Response to the following problem:
The following are account balances of Graham Corporation:
Amount in unadjusted Account trial balance Amount in adjusted trial balance
Rent Receivable $ -0- $110
Prepaid Insurance 1,800 600
Interest Payable -0- 90
Required:
1. Enter the unadjusted balance for each account in the following Taccounts: Interest Receivable, Prepaid Insurance, Interest Payable,
Salaries Payable, Unearned Rent, Interest Earned, Rent Earned, Insurance Expense, Interest Expenses, and Salaries Expense.
2. Reconstruct the adjusting entry that must have been recorded for each account. General ledger account numbers are not necessary.
3. Post these adjusting entries and agree ending balances in each Taccount to the adjusted balances above.
4. List revenue and expense amounts for the period.