Rainmaker Environmental Consultants is just finishing its secondyear of operations. The companyâs unadjusted trial balance atOctober 31, 2011 follows:
Rainmaker Environmental Consultants
Unadjusted Trial Balance
October 31, 2011
Account
Debit
Credit
Cash
28,000
Accounts receivable
56,000
Interest receivable
0
Notes receivable
30,000
Supplies
4,600
Prepaid insurance
9,350
Prepaid rent
21,000
Office furniture
61,440
Accumulated depreciation, office furniture
20,480
Accounts payable
35,000
Wages payable
0
Unearned consulting fees
13,160
Jeff Moore, capital
60,000
Jeff Moore, withdrawals
16,450
Consulting fees earned
314,600
Interest revenue
1,400
Depreciation expense â office furniture
0
Wages expense
147,000
Insurance expense
0
Rent expense
64,000
Supplies expense
6,800
Totals
444,640
444,640
Rainmaker prepares adjustments each October 31. The followingadditional information is available on October 31, 2011:
a.It was determined that $12,000 ofthe unearned Consulting fees had not yet been earned.
b.It was discovered that $6,000 ofthe balance in consulting fees earned was for services to beperformed in November.
c.The balance in the prepaid rentaccount represented three months of rent beginning September 1,2011.
d.Accrued wages at October 31totaled $6,800.
e.The office furniture waspurchased on March 1, 2010, and has an estimated useful life of twoyears. After two years, it is expected that the furniture will beworthless.
f.Accrued consulting fees atyear-end totaled $4,200.
g.Interest of $200 had accrued onthe note receivable for the month of October.
h.The balance in the prepaidinsurance account represents the remaining balance of a two-yearpolicy purchased on April 1, 2010.
i.A count of the supplies onOctober 31 revealed a balance remaining of $900.
Required
Prepare adjusting journal entries on October 31, 2011 based onthe above.
Rainmaker Environmental Consultants is just finishing its secondyear of operations. The companyâs unadjusted trial balance atOctober 31, 2011 follows:
Rainmaker Environmental Consultants | ||
Unadjusted Trial Balance | ||
October 31, 2011 | ||
Account | Debit | Credit |
Cash | 28,000 | |
Accounts receivable | 56,000 | |
Interest receivable | 0 | |
Notes receivable | 30,000 | |
Supplies | 4,600 | |
Prepaid insurance | 9,350 | |
Prepaid rent | 21,000 | |
Office furniture | 61,440 | |
Accumulated depreciation, office furniture | 20,480 | |
Accounts payable | 35,000 | |
Wages payable | 0 | |
Unearned consulting fees | 13,160 | |
Jeff Moore, capital | 60,000 | |
Jeff Moore, withdrawals | 16,450 | |
Consulting fees earned | 314,600 | |
Interest revenue | 1,400 | |
Depreciation expense â office furniture | 0 | |
Wages expense | 147,000 | |
Insurance expense | 0 | |
Rent expense | 64,000 | |
Supplies expense | 6,800 | |
Totals | 444,640 | 444,640 |
Rainmaker prepares adjustments each October 31. The followingadditional information is available on October 31, 2011:
a.It was determined that $12,000 ofthe unearned Consulting fees had not yet been earned.
b.It was discovered that $6,000 ofthe balance in consulting fees earned was for services to beperformed in November.
c.The balance in the prepaid rentaccount represented three months of rent beginning September 1,2011.
d.Accrued wages at October 31totaled $6,800.
e.The office furniture waspurchased on March 1, 2010, and has an estimated useful life of twoyears. After two years, it is expected that the furniture will beworthless.
f.Accrued consulting fees atyear-end totaled $4,200.
g.Interest of $200 had accrued onthe note receivable for the month of October.
h.The balance in the prepaidinsurance account represents the remaining balance of a two-yearpolicy purchased on April 1, 2010.
i.A count of the supplies onOctober 31 revealed a balance remaining of $900.
Required
Prepare adjusting journal entries on October 31, 2011 based onthe above.