Adjusting Entries The Wheel Place Inc Began Operations On March 1 To Provide Automotive Wheel Alignment And Balancing 1 (108.71 KiB) Viewed 46 times
Adjusting Entries The Wheel Place, Inc., began operations on March 1 to provide automotive wheel alignment and balancing services. On March 31, 2012, the unadjusted balances of the firm's accounts are as follows: THE WHEEL PLACE, INC. Unadjusted Trial Balance March 31, 2012 Debit Credit Cash $1,900 Accounts Receivable 3,820 Prepaid Rent 4,770 Supplies 3,700 Equipment 36,180 Accounts Payable 2.510 Unearned Service Revenue 1,000 Common Stock 38,400 Service Revenue 12,360 Wages Expense 3,900 Totals $54,270 $54,270 The following information is also available: 1. The balance in Prepaid Rent was the amount paid on March 1 for the first 5 months rent. 2. Supplies on hand on March 31 were $1,820. 3. The equipment, has an estimated life of 3 years. 4. Unpaid wages at March 31 were $570. 5. Utility services used during March were estimated at $400. A bill is expected early in April. 6. The balance in Unearned Service Revenue was the amount received on March 1 from a new car dealer to cover alignment and balancing services on all new cars sold by the dealer in March and April. The Wheel Place agreed to provide the services at a fixed fee of $550 each month.
Required Prepare the adjusting entries needed at March 31 in general journal form. General Journal Date Description March 31 A Ref. Debit Credit (1) $ $ A To record March rent expense. 31 (2) ) A To record March supplies expense. 31 (3) ) To record March depreciation. 31 (4) 4) A To record unpaid wages at March 31. 31 . (5) ) A To record estimated March utilities expense. 31 . (6) To record portion of revenue received in advance that was earned in March.
Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Cash Common Stock Depreciation Expense-Equipment Dividends Equipment Fees Receivable Prepaid Rent Rent Expense Retained Earnings Service Revenue Supplies Supplies Expense Unearned Service Revenue Utilities Expense Utilities Payable Wages Expense Wages Payable
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