Prepare adjusting entries that lamb company should record

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Reference no: EM133922189

Problem

The unadjusted trial balance for Lamb Company at December 31, 2025 is as follows:

LAMB COMPANY Unadjusted Trial Balance Year Ended December 31, 2025
	Debit	Credit
Accounts Receivable	$21,000
Supplies	4,600
Prepaid rent	2,200
Equipment	110,000
Accumulated depreciation - equipment		$17,000
Bank overdraft		6,000
Accounts Payable		9,800
Note Payable		6,400
Unearned revenue		6,000
K. Lamb, capital		99,000
K. Lamb, drawings	19,500
Service revenue		102,800
Promotion expense	27,000
Insurance expense	5,000
Rent expense	15,000
Salaries expense	36,700
Maintenance expense	6,000
Totals	$247,000	$247,000

The following information was prepared by Lamb Company's controller to help prepare the December 31, 2025 adjusting entries:

• The company has earned revenue totaling $6,000 that has not been invoiced.
• The expired portion of prepaid rent is $750. Get the instant assignment help.
• The earned portion of the Unearned revenue at December 31, 2025 is $2,750
• Depreciation expense for the Equipment has been calculated as $12,000.
• Employees have earned but have not been paid salaries of $6,800.

Task

A. Prepare the adjusting entries that Lamb Company should record at the year ended December 31, 2025.
B. Prepare the appropriate reversing entries relating to the adjustments made in (A) above.

Reference no: EM133922189

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