Reference no: EM132841680

PROBLEM 1 - UNADJUSTED TRIAL BALANCE

George Handyman Services had the following account balances as of December 31, 20x1:

Accounts payable 32,000

Accounts receivable 320,000

Accumulated depreciation 400,000

Building 500,000

Cash 970,000

Interest expense 96,000

Land 700,000

Notes payable 800,000

Owner's equity 920,000

Prepaid rent 50,000

Salaries expense 240,000

Service fees 796,000

Utilities expense 72,000

Requirements -

a. Provide the journal entries.

b. Post the entries to the ledger (use T-accounts).

PROBLEM 2 - UNADJUSTED TRIAL BALANCE

Entity A's accounts have the following balances as of December 31, 20x1:

Accounts payable 100,000

Accounts receivable 400,000

Accumulated depreciation 400,000

Allowance for bad debts 16,000

Bad debt expense 2,000

Cash 890,000

Depreciation expense 200,000

Office equipment 1,000,000

Owner's drawings 10,000

Owner's equity 291,000

Prepaid insurance 30,000

Prepaid supplies 50,000

Salaries expense 420,000

Salaries payable 60,000

Service fees 2,200,000

Supplies expense 5,000

Taxes and licenses 60,000

Requirement - Prepare the unadjusted trial balance. Make sure you provide a proper heading for the report and present the accounts in their correct sequence.