Reece Consultants Had the Following Balances Before Preparing Adjusting Entries

question 89

Essay

Reece Consultants had the following balances before preparing adjusting entries in the books on December 31,2019.
$\begin{array}{ll}\text { Cash } & \$ 6,000&\text {Reece,} \\\text { Withdrawals } & \$ 3,000 \\\text { Accounts Receivable } & 2,000 &\text {Service}\\\text { Revenue } & 10,600 \\\text { Office Supplies } & 1,800 &\text {Salaries}\\\text { Expense } & 4,000\\\text { Equipment } & 15,000 &\text {Rent Expense 8}\\\text { Accumulated Depreciation- } & 9,000 &\text {Depreciation}\\\text { Expense- } & 1,500 \\\text { Equipment } & \text { Equipment } \\\text { Reece, Capital } & 15,000&\text {Supplies} \\\text { Expense } & 500\end{array}$ Prepare the adjusted trial balance after considering these adjustments:
a.Office Supplies used,$800.Assume the office supplies were initially recorded as an asset.
b.Accrued salaries on December 31,$600.
c.Revenue earned but not recorded,$200.

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Definitions:

Donation

A present provided by individuals or organizations, usually for philanthropic reasons or to support a specific cause.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since its acquisition, reflecting its reduction in value over time.

Attachment

The legal process of seizing a debtor's property or assets to satisfy a judgment or debt.

Capitalized Interest

Interest expense that is included in the cost of a constructed asset, allowing the interest to be depreciated over the life of the asset.