Submitted by: Submitted by no1titanfan
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Words: 601
Pages: 3
Category: Business and Industry
Date Submitted: 01/13/2014 04:48 PM
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. | | |
| | | | |
2. | | The IRS requires companies to file annual tax returns. | | |
| | | | |
3. | | Accountants divide the economic life of a business into artificial time periods, but each...