Question

The account balances of Wallace Company as of June 30, the end of the current fiscal year, are as follows:

	TRIAL BALANCE
ACCOUNT NAME	DEBIT	CREDIT
Cash	5,332
Accounts Receivable	689
Supplies	431
Prepaid Insurance	1,180
Equipment	6,476
Accumulated Depreciation, Equipment		1,952
Van	10,098
Accumulated Depreciation, Van		3,204
Accounts Payable		1,191
B. Wallace, Capital		18,518
B. Wallace, Drawing	15,480
Fees Earned		36,308
Salaries Expense	18,070
Advertising Expense	1,894
Van Operating Expense	570
Utilities Expense	815
Miscellaneous Expense	138
	61,173	61,173

Required:

1. Data for the adjustments are as follows:

1. Expired or used up insurance, $445.
2. Depreciation expense on equipment, $640.
3. Depreciation expense on the van, $1,180.
4. Salary accrued (earned) since the last payday, $585 (owed and to be paid on the next payday).
5. Supplies used during the period, $165.

Complete the worksheet. If no amount is required, leave the entry box blank.

Wallace Company
Work Sheet
For Year Ended June 30, 20--
		TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE		INCOME STATEMENT		BALANCE SHEET
	ACCOUNT NAME	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
1	Cash											1
2	Accounts Receivable											2
3	Supplies											3
4	Prepaid Insurance											4
5	Equipment											5
6	Accum. Depr., Equipment											6
7	Van											7
8	Accumulated Depreciation, Van											8
9	Accounts Payable											9
10	B. Wallace, Capital											10
11	B. Wallace, Drawing											11
12	Fees Earned											12
13	Salaries Expense											13
14	Advertising Expense											14
15	Van Operating Expense											15
16	Utilities Expense											16
17	Miscellaneous Expense											17
18												18
19	Insurance Expense											19
20	Depr. Exp., Equipment											20
21	Depreciation Expense, Van											21
22	Salaries Payable											22
23	Supplies Expense											23
24												24
25	Net Income											25
26												26

2. Journalize the adjusting entries. Journalize the adjustments in the order given in the question.

GENERAL JOURNAL						PAGE
DATE	DESCRIPTION				DEBIT	CREDIT
20--	Adjusting Entries
Jun. 30
Jun. 30
Jun. 30
Jun. 30
Jun. 30

Answer 1