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

question 149

Essay

Use the following unadjusted trial balance to prepare adjusting entries,given the additional information below it.Assume that financial statements are prepared quarterly.Omit explanations.
$\begin{array}{c}\text {Shayna's Financial Services}\\\text {Unadjusted Trial Balance}\\\text {September 30, 2010}\\\begin{array}{l|r|}\hline\text { Cash } & \$ 30,000 \\\text { Accounts Receivable } & 9,600 \\\text { Office Supplies } & 1,600 \\\text { Prepaid Rent } & 5,400 \\\text { Office Furniture } & 14,400\\\text { Accumulated Depreciation-Office Furniture } &&\$600 \\\text { Accounts Payable } &&22,200 \\\text { Unearned Revenue } & & 3,000\\\text { Common Stock } && 30,600 \\\text { Consulting Revenue } &&18,000 \\\text { Salaries Expense }&11,000 \\\text { Insurance Expense }&2,400\\&\$74,400&\$74,400\\\hline\end{array}\end{array}$
a. Of the revenue received in advance, 60 percent remained unearned on September 30.
b. The office furniture has an estimated 12-year useful life and zero value at the end of that time. Record depreciation for the quarter.
c. Salaries earned, but unpaid, totaled $2,600.
d. The Prepaid Rent applies to the six months beginning July 1, 2010.
e. Office supplies on hand totaled $600 at the end of the quarter.
f. Services performed but not yet billed or recorded amount to $3,000.

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Definitions:

Consumer Surplus

The difference in the total potential payment consumers are willing to make for a good or service and the actual expenditure they incur.

Welfare Loss

Economic inefficiency resulting from a deviation from an optimal allocation of goods and services, often due to externalities or market power.

Net Social Gain

The overall benefit to society from an economic transaction, after subtracting costs.

Barriers To Entry

Factors that make it difficult for new competitors to enter a market.