Question

Good Note Company specializes in the repair of music equipment and is owned and operated by Robin Stahl. On November 30, 2018, the end of the current year, the accountant for Good Note prepared the following trial balances:

Good Note Company

Trial Balances

November 30, 2018

1		Unadjusted Debit Balances	Unadjusted Credit Balances	Adjusted Debit Balances	Adjusted Credit Balances
2	Cash	38,080.00		38,080.00
3	Accounts Receivable	90,280.00		90,280.00
4	Supplies	11,100.00		1,920.00
5	Prepaid Insurance	14,720.00		3,580.00
6	Equipment	290,735.00		290,735.00
7	Accumulated Depreciation—Equipment		94,385.00		105,605.00
8	Automobiles	128,730.00		128,730.00
9	Accumulated Depreciation—Automobiles		54,060.00		62,295.00
10	Accounts Payable		25,760.00		26,975.00
11	Salaries Payable		—		7,415.00
12	Unearned Service Fees		17,410.00		8,635.00
13	Common Stock		109,000.00		109,000.00
14	Retained Earnings		212,035.00		212,035.00
15	Dividends	74,980.00		74,980.00
16	Service Fees Earned		739,500.00		748,275.00
17	Salary Expense	518,000.00		525,415.00
18	Rent Expense	54,365.00		54,365.00
19	Supplies Expense	—		9,180.00
20	Depreciation Expense—Equipment	—		11,220.00
21	Depreciation Expense—Automobiles	—		8,235.00
22	Utilities Expense	12,615.00		13,830.00
23	Taxes Expense	7,790.00		7,790.00
24	Insurance Expense	—		11,140.00
25	Miscellaneous Expense	10,755.00		10,755.00
26		$1,252,150.00	$1,252,150.00	$1,280,235.00	$1,280,235.00

Compare the unadjusted trial balance to the adjusted trial balance. Journalize the seven entries that adjusted the accounts at November 30. None of the accounts were affected by more than one adjusting entry. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS

Good Note Company

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Insurance
16	Equipment
17	Accumulated Depreciation-Equipment
18	Automobiles
19	Accumulated Depreciation-Automobiles

	LIABILITIES
21	Accounts Payable
22	Salaries Payable
23	Unearned Service Fees

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Service Fees Earned

	EXPENSES
51	Salary Expense
52	Rent Expense
53	Supplies Expense
54	Depreciation Expense-Equipment
55	Depreciation Expense-Automobiles
56	Utilities Expense
57	Taxes Expense
58	Insurance Expense
59	Miscellaneous Expense

Journal

Compare the unadjusted trial balance to the adjusted trial balance. Journalize the seven entries that adjusted the accounts at November 30. None of the accounts were affected by more than one adjusting entry. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Adjusting Entries
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Answer 1

	Accounting titles & Explanations					Debit	Credit
1)	supplies expense					9,180
	supplies.						9,180
2)	Insurance expense					11,140
	prepaid insurance						11,140
3)	Depreciation expense					11,220
	Accumulated Depreciation-Equipment						11,220
4)	depreciation expense					8,235
	Accumulated Depreciation-Automobiles						8,235
5)	utility expense					1,215
	Accounts payable						1,215
6)	Unearned service revenue					8775
	Service revenue						8,775
7)	Salary expense					7,415
	Salaries payable						7,415