Reference no: EM13546408

Lincoln Service Co., which specializes in appliance repair services, is owned and operated by Molly Jordan. Lincoln Service Co.'s accounting clerk prepared the following unadjusted trial balance at December 31, 2008, shown below.

Lincoln Service Co. Unadjusted Trial Balance December 31, 2008
	Debit	Credit
	Balances	Balances
Cash	2,100
Accounts Receivable	10,300
Prepaid Insurance	3,000
Supplies	1,725
Land	50,000
Building	80,750
Accumulated Depreciation-Building		37,850
Equipment	44,000
Accumulated Depreciation-Equipment		17,650
Accounts Payable		3,750
Unearned Rent		3,600
Molly Jordan, Capital		83,550
Molly Jordan, Drawing	2,500
Fees Earned		128,600
Salaries and Wages Expense	50,900
Utilities Expense	14,100
Advertising Expense	7,500
Repairs Expense	6,100
Miscellaneous Expense	2,025
	275,000	275,000

The data needed to determine year-end adjustments are as follows:

a. Depreciation of building for the year, $3,500.

b. Depreciation of equipment for the year, $2,300.

c. Accrued salaries and wages at December 31, $1,100.

d. Unexpired insurance at December 31, $750.

e. Fees earned but unbilled on December 31, $3,250.

f. Supplies on hand at December 31, $525.

g. Rent unearned at December 31, $1,500.

Instructions

1. Journalize the adjusting entries. Add additional accounts as needed.

2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.