Use the Following Unadjusted Trial Balance to Prepare Adjusting Entries,given

question 81

Essay

Use the following unadjusted trial balance to prepare adjusting entries,given the additional information below it.Assume financial statements are prepared quarterly.Omit explanations.
$\begin{array}{c}\text {Crivelli Financial Services}\\\text { Unadjusted Trial Balance}\\\text { September 30. 2010}\\\begin{array}{|l|r|}\hline \text { Cash } & \$ 20,000 \\\text { Accounts Receivable } & 6,400 \\\text { Office Supplies } & 1,000 \\\text { Prepaid Rent } & 3,600 \\\text { Office Furniture } & 9,600\\\text { Accumulated Depreciation -Office Furniture } && \$ 400 \\\text { Accounts Payable } && 14,800 \\\text { Unearned Revenue } && 2,000 \\\text { Common Stock } && 20,400 \\\text { Consulting Revenue } && 12,000\\ \text { Salaries Expense } & 7,400 & \\ \text { Insurance Expense } & 1,600 \\ & \$ 49,600 & \$ 49,600 \\\hline \end{array}\end{array}$

a. Of the revenue received in advance, 60 percent remained unearned on September 30.
b. The office furniture has an estimated five-year useful life and zero value at the end of that time. Record depreciation for the quarter.
c. Salaries earned, but unpaid, totaled $1,520.
d. The Prepaid Rent applies to the six months beginning July 1, 2010.
e. Office supplies on hand totaled $300 at the end of the quarter.
f. Services performed but not yet billed or recorded amount to $1,800.

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Definitions:

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate the relative value of company shares.

Market Price

The current price at which an asset or service can be bought or sold.

Net Income

The sum a company retains as earnings after deducting taxes and expenses from its total revenue.