Adjusting Entries The Wheel Place, Inc., began operations on March 1 to provide automotive wheel alignment and balancing

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Adjusting Entries The Wheel Place Inc Began Operations On March 1 To Provide Automotive Wheel Alignment And Balancing 1 (105.65 KiB) Viewed 45 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 36,000 Accounts Payable 2.330 Unearned Service Revenue 1,000 Common Stock 38,400 Service Revenue 12,360 Wages Expense 3,900 Totals $54,090 $54,090 The following information is also available: 1. The balance in Prepaid Rent was the amount paid on March 1 for the first 3 months rent. 2. Supplies on hand on March 31 were $1,920. 3. The equipment, has an estimated life of 6 years. 4. Unpaid wages at March 31 were $650. 5. Utility services used during March were estimated at $390. 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 $570 each month.
Required Prepare the adjusting entries needed at March 31 in general journal form. General Journal Date Description March 31 Ref. Debit Credit (1) $ $ A > To record March rent expense. 31 (2) A To record March supplies expense. 31 A (3) To record March depreciation. 31 (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