Question

Problem One

The unadjusted trial balance of the Rock-N-Roll Heaven  is printed below. Prepare the adjusting entries for the following unadjusted trial balance. Be sure to format the journal entries correctly.

Rock N-Roll Heaven
Unadjusted Trial Balance
August 31, 2018
Cash	18,700
Accounts Receivable	1,830
Supplies	100
Equipment	19,000
Accum Depreciation - Equipment.		330
Accounts Payable		3,600
Unearned Rent Revenue		1,300
Salaries Payable		1,600
Notes Payable, Long-Term		5,000
Common Stock		10,000
Retained Earnings		17,800
Service Revenue
Rent Revenue
Depreciation Expense-Equipment
Supplies Expense
Salary Expense
	39,630	39,630

1.  Depreciation for the equipment is $200.

2.  Supplies used, $55.

3.  You owe 4 days of salary to employees at August 31. A five-day payroll is $25,000.

4.  You have completed Service Revenue of $35,000 but have not yet billed the client. Record the adjustment.

5.  You have $200 of the amount in Unearned Rent Revenue still to be earned.

Journal
DATE		Description	DEBIT	CREDIT

Answer 1

Adjusting entries

	Journal entries
1	Depreciation expense	200
	Accumulated depreciation - equipment		200
2	Supplies expense	55
	Supplies		55
3	Salary expense	20000	(25000*4/5)
	Salaries payable		20000
4	Accounts rceeivable	35000
	Service revenue		35000
5	Unearned rent revenue	1100	(1300-200)
	Rent revenue		1100