Organizational Behavior

MATTHEWS COMPANY

Trial Balance

August 31, 2012 |

| | Before

Adjustment | | After

Adjustment |

| | Dr. | | Cr. | | Dr. | | Cr. |

Cash | | $10,012 | | | | $10,012 | | |

Accounts Receivable | | 8,876 | | | | 9,535 | | |

Supplies | | 2,318 | | | | 510 | | |

Prepaid Insurance | | 3,916 | | | | 2,616 | | |

Equipment | | 12,947 | | | | 12,947 | | |

Accumulated Depreciation—Equipment | | | | $ 3,715 | | | | $ 4,501 |

Accounts Payable | | | | 5,801 | | | | 5,801 |

Salaries and Wages Payable | | | | 0 | | | | 1,142 |

Unearned Rent Revenue | | | | 1,337 | | | | 792 |

Owner’s Capital | | | | 14,133 | | | | 14,133 |

Service Revenue | | | | 33,955 | | | | 34,614 |

Rent Revenue | | | | 11,170 | | | | 11,715 |

Salaries and Wages Expense | | 16,924 | | | | 18,066 | | |

Supplies Expense | | 0 | | | | 1,808 | | |

Rent Expense | | 15,118 | | | | 15,118 | | |

Insurance Expense | | 0 | | | | 1,300 | | |

Depreciation Expense | | 0 | |   | | 786 | |   |

| | $70,111 | | $70,111 | | $72,698 | | $72,698 |

Date | Account Titles and Explanation | Debit | Credit |

Aug. 31 | | | |

| | | |

| (To record accrued revenue) | | |

Aug. 31 | | | |

| | | |

| (To record supplies used) | | |

Aug. 31 | | | |

| | | |

| (To record expired insurance) | | |

Aug. 31 | | | |

| | | |

| (To record depreciation) | | |

Aug. 31 | | | |

| | | |

| (To record accrued salaries) | | |

Aug. 31 | | | |

| | | |

| (To record rent earned) | | |

1. | | Adjusting entries would not be necessary if a company’s life were not divided into artificial time periods. | | |

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2. | | The IRS requires companies to file annual tax returns. | | |

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3. | | Accountants divide the economic life of a business into artificial time periods, but each...