The Unadjusted Trial Balance of James Business Consulting at December

question 105

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
$\begin{array}{|l|r|r|} \hline&\text { Balance } & \text { Balance } \\\hline \text { Cash } &\$ 40,000 \\\hline \text { Accounts Receivable } & 12,000 \\\hline \text { Prepaid Insurance } & 3,000 \\\hline \text { Office Supplies } & 6,000\\\hline \text { Accounts Payable } & & \$ 5,000 \\\hline \text { Advertising Payable } & & 0 \\\hline \text { Tames, Capital } & & 37,000 \\\hline \text { James, Withdrawals } & 5,000 & \\\hline \text { Service Revenue } & & 44,000 \\\hline \text { Advertising Expense } & 500 & \\\hline \text { Insurance Expense } & 1,500\\\hline \text { Office Supplies Expense } & 0 \\\hline \text { Rent Expense } & 6,000 \\\hline & \\\text { Salaries Expense } & 12,000\\\hline\text { Total } & \$ 86,000 & \$ 86,000 \\\hline\end{array}$ 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:

Maximum Price

A price ceiling set by a governing body meant to control the maximum price that can be charged for a product or service, often implemented to prevent prices from reaching levels considered too high for consumers to afford.

Equilibrium Price

The price at which the quantity of a good supplied is equal to the quantity of the good demanded.

Price Ceiling

A legal maximum price that can be charged for a good or service, intended to protect consumers.

Price Ceiling

A legally imposed maximum price on goods or services, intended to protect consumers from high costs.