Chapter 3: Q 37PGA-1 (page 173)
Greavy Theater Production Company’s partially completed worksheet as of December 31, 2018, follows. Adjustment data at December 31 follow: a. As of December 31, Greavy had performed \(500 of service revenue but has not yet billed customers. b. At the end of the month, Greavy had \)700 of office supplies remaining. c. Prepaid Insurance of \(3,900 remained. d. Depreciation expense, \)4,000. e. Accrued salaries expense of $200 that hasn’t been paid yet. Requirements 1. Complete the worksheet. Use letters a through e to label the five adjustments. 2. Journalize the adjusting entries.
Short Answer
Worksheet is as follows:
| GREAVY THEATER PRODUCTION COMPANY | ||||||||
| Worksheet | ||||||||
| December 31, 2018 | ||||||||
| Account Names | Unadjusted Trial Balance | Adjustments | Adjusted Trial Balance | |||||
| Debit | Credit | Debit | Credit | Debit | Credit | |||
Cash | $4,300 | $4,300 | ||||||
Accounts Receivable | 5,900 | (a) | $500 | 6,400 | ||||
Office Supplies | 1,900 | $1,200 | (b) | 700 | ||||
Prepaid Insurance | 4,550 | 650 | (c) | 3,900 | ||||
Equipment | 30,000 | 30,000 | ||||||
Accumulated Depreciation—Equipment | $7,600 | 4,000 | (d) | 11,600 | ||||
Accounts Payable | 3,600 | 3,600 | ||||||
Salaries Payable | $200 | (e) | 200 | |||||
Common Stock | 21,950 | 21,950 | ||||||
Dividends | 30,500 | 30,500 | ||||||
Service Revenue | 77,000 | 500 | (a) | 77,500 | ||||
Depreciation Expense—Equipment | (d) | 4,000 | 4,000 | |||||
Supplies Expense | (b) | 1,200 | 1,200 | |||||
Utilities Expense | 5,500 | 5,500 | ||||||
Salaries Expense | 27,500 | (e) | 200 | 27,700 | ||||
Insurance Expense | (c) | 650 | 650 | |||||
Total | $110,150 | $110,150 | $6,550 | $6,550 | $114,850 | $114,850 | ||
Step by step solution
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