The Unadjusted Trial Balance of James Business Consulting at December

question 85

Essay

The unadjusted trial balance of James Business Consulting at December 31, 2018, and the data for the adjustments follow:
James Business Consulting
Unadjusted Trial Balance
December 31,2018 $$\begin{array} { | l | r | r | } \hline & \text { Balance } & { \text { Balance } } \\\hline \text { Account Title } & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 40,000 & \\\hline \text { Accounts Receivable } & 12,000 & \\\hline \text { Prepaid Insurance } & 3,000 & \\\hline \text { Office Supplies } & 6,000 & \\\hline \text { Accounts Payable } & & 5,000 \\\hline \text { Advertising Payable } & & 30,000 \\\hline \text { Common Stock } & & 7,000 \\\hline \text { Retained Earnings } & 5,000 & \\\hline \text { Dividends } & & 44,000 \\\hline \text { Service Revenue } & 500 & \\\hline \text { Advertising Expense } & 1,500 & \\\hline \text { Insurance Expense } & 0 & \\\hline \text { Office Supplies Expense } & 6,000 & \\\hline \text { Sent Expense } & \underline { 12,000 } & \\\hline \text { Total } & \$ 86,000 & \$ 86,000 \\\hline\end{array}$$ Data for adjustments:
a. James prepaid 6 months of business insurance on September 30, 2018, with coverage beginning on October 1. James treats deferred expenses initially as assets.
b. A physical count of office supplies was made on December 31, 2018. This count showed a balance of $4,200 office supplies on hand.
c. On December 31, 2018, James received a bill for the November and December advertising in a local newspaper, $800. This bill will be paid on its due date, which is 1/10/2019.
James is preparing financial statements for the quarter ending December 31, 2018.
Requirements
1. Journalize the adjusting entries on December 31, 2018.
2. Prepare the December 31, 2018 adjusted trial balance. Use a proper heading.

---

Definitions:

Concussion

A jarring injury to the brain; the most common type of head injury.

Jarring Injury

A type of injury typically caused by a sudden and forceful impact, often leading to concussion or other trauma.

Semi-Fowler's Position

A seating position where the patient is inclined at an angle between 15 to 45 degrees; often used to promote comfort and respiratory function.

Ingestion

The intake of food or other substances into the body through the mouth, the first step in digestion.