Use the Following Information to Prepare the Adjusted Trial Balance

question 42

Essay

Use the following information to prepare the adjusted trial balance for Bella's Beauty Salon.Bella's Beauty Salon's unadjusted trial balance for the current year follows:
$\begin{array}{c}\text { BELLA'S BEAUTY SALON}\\\text { Trial Balance}\\\text { December 31}\\\begin{array}{|l|r|l|}\hline \text { Cash } & \$ 4,200 & \\\hline \text { Prepaid insurance } & 1,480 & \\\hline \text { Shop supplies } & 990 & \\\hline \text { Shop equipment } & 3,860 &\\\hline \text { Accumulated depreciation - shop equipment } & & \$ 770 \\\hline \text { Building } & 57,500 & \\\hline \text { Accumulated depreciation - building } & & 3,840 \\\hline \text { Land } & 55,000 &\\\hline \text { Unearned rent } & & 1,600 \\\hline \text { Long-term notes payable } & & 50,000 \\\hline \text { Common stock } & & 10,000 \\\hline \text { Retained earnings } & & 39,860 \\\hline \text { Rent earned } & & 2,400 \\\hline \text { Fees earned } & & 23,400 \\\hline\text { Wages expense } & 3,200 & \\\hline \text { Utilities expense } & 690 & \\\hline \text { Property taxes expense } & 600 & \\\hline \text { Interest expense } & 4,350 & \\\hline \text { Totals } & \$ 131.870 & \$ 131.870 \\\hline\end{array}\end{array}$
Additional information:
a.An insurance policy examination showed $1,240 of expired insurance.
b.An inventory count showed $210 of unused shop supplies still available.
c.Depreciation expense on shop equipment,$350.
d.Depreciation expense on the building,$2,220.
e.A beautician is behind on space rental payments and this $200 of accrued revenue was unrecorded at the time the trial balance was prepared..
f.$800 of the Unearned Rent account balance was earned by year-end.
g.The one employee,a receptionist,works a five-day workweek at $50 per day.The employee was paid last week but has worked four days this week for which she has not been paid.
h.Three months' property taxes,totaling $450,have accrued.This additional amount of property taxes expense has not been recorded.
i.One month's interest on the note payable,$600,has accrued but is unrecorded.

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Definitions:

External Adaptation

The adjustment process entities undergo to cope with new, changed, or evolving outside environmental factors.

Internal Integration

The process of ensuring various elements within an organization work together effectively and harmoniously.

Internal Integration

The process of aligning and harmonizing the internal elements of an organization, such as its culture, values, and systems.

Group and Team Boundaries

The distinct limits that define a group or team's structure, membership, roles, and functions, distinguishing it from other groups or organizational contexts.