Appendix M


Appendix M
Adjusting Entries, Posting, and Preparing an Adjusted Trial Balance
Powerhouse Consulting

use this template to complete the assignment per the instructions below

Powerhouse Consulting Chart of Accounts:
No. 101 Cash
No. 112 Accounts Receivable
No. 126 Supplies
No. 130 Prepaid Insurance
No. 149 Office Furniture
No. 150 Accumulated Depreciation – Office Furniture
No. 201 Accounts Payable
No. 209 Salaries Payable
No. 212 Travel Payable
No. 229 Unearned Revenue
No. 311 Common Stock
No. 400 Service Revenue
No. 717 Depreciation Expense
No. 722 Insurance Expense
No. 726 Rent Expense
No. 729 Salaries Expense
No. 731 Supplies Expense
No. 736 Travel Expense

Leo Drayton started his own consulting firm, Powerhouse Consulting, on August 1, 2010
The trial balance at August 31, 2010 is as follows:

Powerhouse Consulting
Trial Balance
August 31, 2010
Debit Credit
Cash 5,700
Accounts Receivable 6,000
Supplies 1,900
Prepaid Insurance 3,600
Office Furniture 10,200
Accounts Payable 4,500
Unearned Revenue 2,000
Common Stock 17,700
Service Revenue 7,500
Rent Expense 900
Salaries Expense 3,400
Totals 31,700 31,700

Other Data:
1) $900 of supplies is on hand at the end of the month
2) Travel Expense incurred but not paid as of August 31, 2010 is $400
3) The insurance policy is for 2 years
4) $1,600 of the balance in the unearned revenue account has been earned at the end of the month
5) Accrued salaries at the end of the month are $1,600
6) The office furniture is depreciated at a rate of $170 per month for 60 months
7) $1,200 of services earned has not been recorded as of August 31, 2010

(a) Prepare the adjusting entries for August on the tab labeled General Journal
(b) Enter the totals from the trial balance as beginning balances and post the adjusting entries to the ledger accounts on the tab labeled Ledger Accounts
(c) Prepare an adjusted trial balance at August 31, 2010 on the tab labeled Adjusted Trial Balance