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Chapter 3: Q43PGB (page 178)

Galaxy Theater Production Company鈥檚 partially completed worksheet as of December 31, 2018, follows.

Galaxy Theater Production Company
Worksheet
December 31, 2018







Account Names
Unadjusted Trial Balance
Adjustments
Adjusted Trial Balance
Debit
Credit
Debit
Credit
Debit
Credit

Cash

\( 3,600

Accounts Receivables

5,700

Office Supplies

1,500

Prepaid Insurance

900

Equipment

23,000

Accumulated Depreciation 鈥� Equipment

\) 8,500

Accounts Payable

4,600

Salaries Payable

Common Stock

9,900

Dividends

26,000

Service Revenue

72,000

Depreciation Expense 鈥� Equipment

Supplies Expense

Utilities Expense

4,300

Salaries Expense

30,000

Insurance Expense

Total

\( 95,000

\) 95,000

Adjustment data at December 31 follow:

a. As of December 31, Galaxy had performed \(900 of service revenue but has not yet billed customers.

b. At the end of the month, Galaxy had \)500 of office supplies remaining.

c. Prepaid Insurance of \(600 remained.

d. Depreciation expense, \)4,200.

e. Accrued salaries expense of $150 that hasn鈥檛 been paid yet.

Requirements

1. Complete the worksheet. Use letters athrough eto label the five adjustments.

2. Journalize the adjusting entries.

Short Answer

Expert verified

Total of adjusted trial balance: $100,250

Step by step solution

01

Preparation of worksheet

Galaxy Theater Production Company

Worksheet

December 31, 2018

Account Names
Unadjusted Trial Balance
Adjustments
Adjusted Trial Balance
Debit
Credit
Debit
Credit
Debit
Credit

Cash

$ 3,600

$ 3,600

Accounts (a) Receivables

5,700

$ 900

6,600

Office Supplies (b)

1,500

$ 1,000

500

Prepaid Insurance (c)

900

300

600

Equipment

23,000

23,000

Accumulated (d) Depreciation 鈥� Equipment

$ 8,500

4,200

$ 12,700

Accounts Payable

4,600

4,600

Salaries Payable (e)

150

150

Common Stock

9,900

9,900

Dividends

26,000

26,000

Service Revenue (a)

72,000

900

72,900

Depreciation Expense 鈥� Equipment (d)

4,200

4,200

Supplies Expense (b)

1,000

1,000

Utilities Expense

4,300

4,300

Salaries Expense (e)

30,000

150

30,150

Insurance Expense (c)

300

300

Total

$ 95,000

$ 95,000

$ 6,550

$ 6,550

$ 100,250

$ 100,250

02

Recording of adjusting entry

Date

Particular

Debit

Credit

a)

Accounts Receivable

$ 900

Service Revenue

$ 900

Being billed customers for providing services

b)

Supplies Expense

1,000

Office Supplies

1,000

Being office supplies used

c)

Insurance Expense

300

Prepaid Insurance

300

Being Prepaid insurance expired

d)

Depreciation Expense

4,200

Accumulated Depreciation

4,200

Being depreciation incurred for the period

e)

Salaries Expense

150

Accrued Salaries

150

Being salary outstanding for the period

Total

$ 6,550

$ 6,550

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Most popular questions from this chapter

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