Based on the unadjusted trial balance for Glow Styling and the adjusting information given below, prepare the adjusting journal entries for Glow Styling. After completing the adjusting entries, prepare the trial balance for Glow Styling.Glow Styling unadjusted trial balance for the current year follows: Glow StylingTrial BalanceDecember 31Cash…………………………………………………. $ 4,200?Prepaid insurance …………………………………...1,480?Shop supplies .............................................................990?Shop equipment …………………………………….3,860?Accumulated depreciation-shop equipment ……….. ?$ 770Building……………………………………………...57,500?Accumulated
depreciation-building………………..?3,840Land ………………….55,000?Unearned rent………………………………………..?1,600Long-term notes payable…………………………….?50,000Common stock ……………………………….?40,000Retained earnings ……………………………….?9,860Rent earned ………………………………………….?2,400Fees earned ………………………………………….?23,400Wages expense ……………………………………...3,200?Utilities expense ……………………………………690?Property taxes expense …………………………….600?Interest expense ……………………………………4,350________Totals ……………………………………………….. $131,870 $131,870Additional information:a. An insurance policy examination showed $1,240 of expired insurance.b. An inventory count showed $210 of unused shop supplies still available.c. Depreciation expense on shop equipment, $350.d. Depreciation expense on the building, $2,220.e. A beautician is behind on space rental payments, and this $200 of accrued revenues was unrecorded at the time the trial balance was prepared.f. $800 of the Unearned Rent account balance was earned by year-end.g. The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked four days this week for which she has not been paid.h. Three months' property taxes, totaling $450, have accrued. This additional amount of property taxes expense has not been recorded.i. One month's interest on the note payable, $600, has accrued but is unrecorded. Use the above information to prepare the adjusted trial balance for Glow Styling.
What will be an ideal response?
| Glow Styling Trial Balance December 31 | ||
| Cash……………………………………………. | $ 4,200 | ? |
| Rent receivable……………………………..…. | 200 | ? |
| Prepaid insurance…………………………... | 240 | ? |
| Shop supplies ....................................................... | 210 | ? |
| Shop equipment …………….………………. | 3,860 | ? |
| Accumulated depreciation-shop equipment | ? | $ 1,120 |
| Building………………………………….. | 57,500 | ? |
| Accumulated depreciation-building……….. | ? | 6,060 |
| Land ………………………………………… | 55,000 | ? |
| Wages Payable………………………………….. | ? | 200 |
| Property taxes payable………………………… | ? | 450 |
| Interest payable………………………………… | ? | 600 |
| Unearned rent………………………………….. | ? | 800 |
| Long-term notes payable………………………. | ? | 50,000 |
| Common stock …………………………… | ? | 40,000 |
| Retained earnings …………………………… | ? | 9,860 |
| Rent earned ……………………………………. | ? | 3,400 |
| Fees earned ……………………………………. | ? | 23,400 |
| Wages expense ………………………………... | 3,400 | ? |
| Utilities expense ……………………………… | 690 | ? |
| Property taxes expense …………………………. | 1,050 | ? |
| Insurance expense ……………………………… | 1,240 | ? |
| Shop supplies expense………………………… | 780 | ? |
| Depreciation expense-shop equipment……….. | 350 | ? |
| Depreciation expense-building…………….. | 2,220 | ? |
| Interest expense ………………………………… | 4,950 | ? |
| Totals……………………………………….. | $135,890 | $135,890 |
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