Garvey Company’s unadjusted trial balance includes the following account balances as of December 31,
Garvey Company’s unadjusted trial balance includes the following account balances as of December 31, 2018: Debits Credits Cash $ 69,030 Accounts Receivable 116,900 Interest Receivable 1,320 Supplies 139,300 Prepaid Insurance 8,750 Notes Receivable (short-term) 50,300 Equipment 279,200 Accumulated Depreciation $ 64,800 Accounts Payable 104,600 Salaries and Wages Payable 21,700 Deferred Revenue 9,300 Notes Payable (long-term) 87,800 Common Stock 217,200 Retained Earnings 144,200 Service Revenue 40,700 Interest Revenue 22,000 Supplies Expense Repair and Maintenance Expense 26,550 Rent Expense 17,900 Depreciation Expense Insurance Expense Salaries and Wages Expense 3,050 Totals $ 712,300 $ 712,300
The following data are available to determine adjusting entries:
A) Insurance purchased at the beginning of July for $8,750 provided coverage for twelve months (July 2018 through June 2019). The insurance coverage for July through December totaling $4,375 has now been used. B) The company estimates $8,200 in depreciation each year. C) A count showed $86,200 of supplies on hand at the end of the year. D) An additional $270 of interest has been earned but has not yet been uncollected on the outstanding notes receivable. E) Services in the amount of $5,650 were performed for customers who had previously paid in advance. F) Services in the amount of $2,100 were performed; these services have not yet been billed or recorded.
Required: Prepare the adjusting entries that are required at the end of the period. Prepare an adjusted trial balance by completing the related columns in the table below.
A) adjusting entries required at the end of the period:
1) Record the adjusting entry for insurance expense expired during the period. Record the adjusting entry for depreciation expense for the period. Record the adjusting entry for supplies used during the period. Record the adjusting entry for interest earned and receivable on the outstanding notes receivable for the period. Record the adjusting entry for services performed, for which customers had previously paid in advance. Record the adjusting entry for services performed, which are not yet billed or recorded.
Required B:
Credit Garvey Company Adjusted Trial Balance December 31, 2018 Debit Cash Accounts Receivable Interest Receivable Supplies Prepaid Insurance Notes Receivable (short-term) Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Deferred Revenue Notes Payable (long-term) Common Stock Retained Earnings Service Revenue Interest Revenue Supplies Expense Repairs and Maintenance Expense Rent Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Totals