Question

Good Note Company specializes in the repair of music equipment and is owned and operated by Robin Stahl. On November 30, 2016, the end of the current year, the accountant for Good Note Company prepared an unadjusted trial balance and an adjusted trial balance.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.Adjusted Trial BalanceGood Note CompanyADJUSTED TRIAL BALANCENovember 30, 2016 ACCOUNT TITLE DEBIT CREDIT1 Cash 38,250.002 Accounts Receivable 89,500.003 Supplies 2,400.004 Prepaid Insurance 3,850.00 5 Equipment 290,450.006 Accumulated Depreciation-Equipment 106,100.007 Automobiles 129,500.008 Accumulated Depreciation-Automobiles 62,050.009 Accounts Payable 26,130.0010 Salaries Payable 8,100.0011 Unearned Service Fees 9,000.0012 Common Stock 100,000.0013 Retained Earnings 224,020.0014 Dividends 75,000.0015 Service Fees Earned 742,800.0016 Salaries Expense 525,000.0017 Rent Expense 54,000.0018 Supplies Expense 8,850.0019 Depreciation Expense-Equipment 11,600.0020 Depreciation Expense-Automobiles 7,300.0021 Utilities Expense 14,100.0022 Taxes Expense 8,175.0023 Insurance Expense 10,400.0024 Miscellaneous Expense 9,825.0025 Totals 1,278,200.00 1,278,200.00Chart of AccountsCHART OF ACCOUNTSGood Note CompanyGeneral Ledger ASSETS11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance16 Equipment17 Accumulated Depreciation-Equipment18 Automobiles19 Accumulated Depreciation-Automobiles LIABILITIES21 Accounts Payable22 Salaries Payable23 Unearned Service Fees EQUITY31 Common Stock32 Retained Earnings33 Dividends REVENUE41 Service Fees Earned EXPENSES51 Salaries Expense52 Rent Expense53 Supplies Expense54 Depreciation Expense-Equipment55 Depreciation Expense-Automobiles56 Utilities Expense57 Taxes Expense58 Insurance Expense59 Miscellaneous ExpenseJournalShaded cells have feedback.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.

Answer 1

Good Note Company

Journal Entries:

Debit 23 Unearned Service Fees $9,000

Credit 41 Service Fees Earned $9,000

To record earned fees.

Debit 51 Salaries Expense $8,100

Credit 22 Salaries Payable $8,100

To record accrued salaries.

Debit 53 Supplies Expense $8,850

Credit 13 Supplies $8,850

To record used supplies.

Debit 54 Depreciation Expense-Equipment 11,600

Credit 17 Accumulated Depreciation-Equipment $11,600

To record depreciation expense for the period.

Debit 55 Depreciation Expense-Automobiles 7,300

Credit 19 Accumulated Depreciation-Automobiles $7,300

To record depreciation expense for the period.

Debit 56 Utilities Expense $1,200

Credit 21 Accounts Payable $1,200

To record accrued utilities expense.

Debit 58 Insurance Expense $10,400

Credit 14 Prepaid Insurance $10,400

To record expired insurance.

Step-by-step explanation:

a) Data and Calculations:

Good Note Company

UNADJUSTED TRIAL BALANCE

November 30, 2016

ACCOUNT TITLE DEBIT CREDIT

1 Cash 38,250

2 Accounts Receivable 89,500

3 Supplies 11,250

4 Prepaid Insurance 14,250

5 Equipment 290,450

6 Accumulated Depreciation-Equipment 94,500

7 Automobiles 129,500

8 Accumulated Depreciation-Automobiles 54,750

9 Accounts Payable 24,930

10 Salaries Payable

11 Unearned Service Fees 18,000

12 Common Stock 100,000

13 Retained Earnings 224,020

14 Dividends 75,000

15 Service Fees Earned 733,800

16 Salaries Expense 516,900

17 Rent Expense 54,000

18 Supplies Expense

19 Depreciation Expense-Equipment

20 Depreciation Expense-Automobiles

21 Utilities Expense 12,900

22 Taxes Expense 8,175

23 Insurance Expense

24 Miscellaneous Expense 9,825

25 Totals 1,250,000 1,250,000

Good Note Company

ADJUSTED TRIAL BALANCE

November 30, 2016

ACCOUNT TITLE DEBIT CREDIT

1 Cash 38,250

2 Accounts Receivable 89,500

3 Supplies 2,400

4 Prepaid Insurance 3,850

5 Equipment 290,450

6 Accumulated Depreciation-Equipment 106,100

7 Automobiles 129,500

8 Accumulated Depreciation-Automobiles 62,050

9 Accounts Payable 26,130

10 Salaries Payable 8,100

11 Unearned Service Fees 9,000

12 Common Stock 100,000

13 Retained Earnings 224,020

14 Dividends 75,000

15 Service Fees Earned 742,800

16 Salaries Expense 525,000

17 Rent Expense 54,000

18 Supplies Expense 8,850

19 Depreciation Expense-Equipment 11,600

20 Depreciation Expense-Automobiles 7,300

21 Utilities Expense 14,100

22 Taxes Expense 8,175

23 Insurance Expense 10,400

24 Miscellaneous Expense 9,825

25 Totals 1,278,200.00 1,278,200

Analysis of Adjustments:

23 Unearned Service Fees $9,000 41 Service Fees Earned $9,000

51 Salaries Expense $8,100 22 Salaries Payable $8,100

53 Supplies Expense $8,850 13 Supplies $8,850

54 Depreciation Expense-Equipment 11,600 17 Accumulated Depreciation-Equipment $11,600

55 Depreciation Expense-Automobiles 7,300 19 Accumulated Depreciation-Automobiles $7,300

56 Utilities Expense $1,200 21 Accounts Payable $1,200

58 Insurance Expense $10,400 14 Prepaid Insurance $10,400