Question - The balances of the ledger accounts for Buffet Services on September 30, 2016, and the information needed for adjustments are shown below.
|
Account Name
|
Balance
|
|
Cash
|
$16,000
|
|
Accounts Receivable
|
8,200
|
|
Supplies
|
3,000
|
|
Prepaid Insurance
|
7,800
|
|
Equipment
|
18,600
|
|
Accumulated Depreciation-Equipment
|
-
|
|
Accounts Payable
|
6,400
|
|
Jane Buffet, Capital
|
45,000
|
|
Jane Buffet, Drawing
|
3,600
|
|
Fees Income
|
25,000
|
|
Advertising Expense
|
2,400
|
|
Rent Expense
|
4,200
|
|
Salaries Expense
|
11,200
|
|
Supplies Expense
|
-
|
|
Insurance Expense
|
-
|
|
Utilities Expense
|
1,400
|
|
Depreciation Expense-Equipment
|
-
|
Adjustment information:
(a) The supplies were purchased on September 1, 2016. An inventory of supplies showed $1,800 on hand on September 30, 2016.
(b) The amount of Prepaid Insurance represents a payment made September 1, 2016, for a six-month insurance policy.
(c) The equipment, purchased September 1, 2016, has an estimated useful life of 5 years with no salvage value. The firm uses the straight-line method of depreciation.
Prepare the Trial Balance section, record the adjustments, and complete the worksheet.