Blum Services Has the Following Unadjusted Balances at Year-End The Following Information Is Available to Use in Making Adjusting

question 34

Essay

Blum Services has the following unadjusted balances at year-end.
$$\begin{array} { |l | r | } \hline \text { Cash } & \$ 12,900 \\\hline \text { Prepaid insurance } & 2,000 \\\hline \text { Office supplies } & 1,300 \\\hline \text { Office equipment } & 10,500 \\\hline \text { Accumulated depreciation-office equipment } & 3,500 \\\hline \text { Accounts payable } & 2,900 \\\hline \text { Salaries payable } & - 0- \\\hline \text { Unearned service revenue } & 4,500 \\\hline \text { A.L.Blum, capital } & 11,750 \\\hline \text { A.L.Blum, drawing } & 5,600 \\\hline \text { Service revenue } & 13,350 \\\hline \text { Salary expense } & 3,700 \\\hline \text { Depreciation expense } & - 0 - \\\hline \text { Supplies expense } & - 0 - \\\hline \text { Insurance expense } & - 0 - \\\hline\end{array}$$ The following information is available to use in making adjusting entries.
a.Office supplies on hand at year-end: $250
b.Prepaid insurance expired during the year: $325
c.Unearned revenue remaining at year-end: $2,500
d.Depreciation expense for the year: $1,800
e.Accrued salaries at year-end: $900
Using the work sheet below,prepare the trial balance,the adjustments and the adjusted trial balance for Blum Services.

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Definitions:

Principle of Exceptions

A management principle where focus is directed towards cases that deviate significantly from the norm, allowing managers to concentrate on significant issues rather than routine matters.

Standard Costs

Predetermined or estimated costs to manufacture a product or provide a service, used in budgeting and measuring performance.

Budgeted Cost Systems

Accounting methods that use budgets to project costs and revenues, helping companies plan for future operations and financial performance.

Product Costs

The three components of manufacturing cost: direct materials, direct labor, and factory overhead costs.