Adjustment in general account balanceslisted below are the

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Reference no: EM13356545

Adjustment in general account balances.

Listed below are the unadjusted general ledger account balances of Olsen Company at June 30, 2009 (amounts are reflected at their normal balance):

Cash	6,775
Accounts Receivable	2,500
Office Supplies	950
Prepaid Insurance	2,000
Building	100,000
Accumulated Depreciation - Bldg.	60,000
Delivery Van	36,000
Accumulated Depreciation - Van	1,200
Accounts Payable	5,500
Unearned Rent Revenue	800
Note Payable	18,000
Common Stock	20,000
Retained Earnings	26,000
Service Revenue	39,000
Rent Revenue	4,000
Wage Expense	21,600
Insurance Expense	475
Depreciation Expense - Building	2,500
Depreciation Expense - Van	1,200
Supplies Expense	500

Additional information is available on June 30, 2009, the end of a monthly accounting period.

a. Olsen Company purchased a 2-year insurance policy on February 1, 2009 and debited Prepaid Insurance for $2,400.

b. On January 1, 2009, a tenant in an apartment building owned by Olsen Company paid six months' rent in advance. The amount received was credited to Unearned Rent Revenue.

c. A count of office supplies at June 30 revealed $240 of supplies on hand.

d. On March 31, 2009, Olsen Company purchased a delivery van for $36,000. Annual depreciation is estimated to be $7,200.

e. The depreciation on the building for June has already been recorded.

f. Olsen Company has two office employees who earn $80 and $100 per day, respectively. They are paid each Friday for a five-day work week that begins each Monday. June 30 is a Tuesday in 2009.

g. On June 1, Olsen Company signed a 6-month, 8%

Reference no: EM13356545

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