36A Journalizing and posting adjustments to the four-column accounts and;preparing an adjusted trial balance;The unadjusted trial balance of Lexington Inn Company at December 31, 2014;and the data needed for the adjustments follow.;Account Title;Prepaid Insurance;Cash;Debit Credit;Accounts Receivable;Office Supplies;Building;Accumulated Depreciation?Building;Accounts Payable;Salaries Payable;Unearned Revenue;Calvasina, Capital;Calvasina, Withdrawals;Service Revenue;Salaries Expense;Insurance Expense;Depreciation Expense?Building;Advertising Expense;Supplies Expense;Total;Balance;$ 12,100;$ 447,190 $ 447,190;411,000;114,740;2,400;15,600;14,300;2,300;1,100;$ 312,500;1,950;2,860;2,700;830;LEXINGTON INN COMPANY;Unadjusted Trial Balance;December 31, 2014;Learning Objectives 3, 4;3. Adjusted trial balance, $449,990;total;ISBN 1-269-32781-X;The Adjusting Process;189;C H A P T E R 3;Adjustment data at December 31 follow;a. As of December 31, Lexington had $700 of Prepaid Insurance remaining.;b. At the end of the month, Lexington had $600 of office supplies remaining.;c. Depreciation on the building is $1,600.;d. Lexington pays its employees weekly on Friday. Its employees earn $2,000 for a;five-day workweek. December 31 falls on Wednesday this year.;e. On November 20, Lexington contracted to perform services for a client receiving;$2,400 in advance. Lexington recorded this receipt of cash as Unearned Revenue.;As of December 31, Lexington has $1,400 still unearned.;Requirements;1. Journalize the adjusting entries on December 31.;2. Using the unadjusted trial balance, open the accounts (use a four-column;ledger) with the unadjusted balances. Post the adjusting entries to the ledger;accounts.;3. Prepare the adjusted trial balance.;4. Assuming the adjusted trial balance has total debits equal to total credits, does;this mean that the adjusting entries have been recorded correctly? Explain.
Paper#24504 | Written in 18-Jul-2015Price : $27