Prepare the required adjusting entries

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Reference no: EM131712394

Question - The trail balance relates to the year 2016. It was prepared at 31/12/2016 but the accountant did not include the following.

1. Deprecation for the year. Years of usefulness of equipment is 10 years.

2. Accrued salary at 31, December for Monday, Tuesday, Wednesday and Thursday. The five days weekly payroll is 1500.

3. On the first of October, the company collected from a customer for advertisement $4000, the service will be provided from October through January.

Account

Debit

Credit

Cash

120200


Accounts receivable

15600


Supplies

3300


Prepaid rent

1050


Equipment

20000


Accumulated depreciation


2000

Accounts payable


10450

Salary payable


5600

Unearned revenue


4000

Share Capital


120000

Revenue


30000

Retained eantinp,s


9350

Withdrawals

950


Depreciation

0


Salary expense

12000


Rent Expense

8300


Total

181400

181400

Required -

1. Prepare the required adjusting entries.

2. Prepare the adjusted trail balance.

3. Prepare the Income statement and the balance sheet.

Reference no: EM131712394

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