Ilustrative Problem (Page 122)Solution

No 1 Journal

Date Description2010

July 31 Supplies expenseSupplies

Supplies used ($1.270 -$380)

31 Insurance expense Prepaid Insurance

Insurance expired.

31 Depreciation expenseAccumulated Depreciation- Office Equipment

Depreciation expense.

31 Wages expenseWages Payable

Accrued wages

31 Accounts ReceivableFees Earned

Accrued fees

31 Unearned FeesFees Earned

Fees Earned ($1.250-$750)

No. 2 Harbor RealtyAdjusted Trial Balance

Juli 31, 2010

Cash …………………………………………………………………………………………………………….……Accounts Receivable ………………………………………………………………………………….…...Supplies………………………………………………………………………….………………………………..Prepaid Insurance ……………………………………………………………….…………………………..

Post Ref.

Office Equipment …………………….……………….……………………………………………………..Accumulated Depreciation-Office Equipment .….……………………………………………Account Payable …………………………………………………….…………………………………………Wages Payable ……….…….…..……………………………………………………………………………..Unearned Fees …..……….……………………………………………………………………………………T. Roderick, Capital …….………………………………………………………………………………….…T. Roderick, Drawing ….…………………………………………………………………………………….Fees Earned ……………….…………..……………………………………………………….……………….Wages Expense ………….…………………………………………………………………………………….Depreciation Expense ….…………………………………………………………………………………..Rent Expense …………….…………………………………………………………………………………….Utilities Expense ………………………….………………………………………………………………….Supplies Expense ……….……………………………………………………………………………………Insurance Expense ……….………………………………………………………………………………….Miscellaneous Expense ……………….………………………………………………………………….

Journal

Debit Credit

890890

315315

4,9504,950

440440

1,0001,000

500500

Harbor RealtyAdjusted Trial Balance

Juli 31, 2010

Debit Balance

3,425 3,425 8,000 8,000 380 380 305 305

Credit Balance

51,650 51,650 14,650 14,650 925 925 440 440 750 750 29,000 29,000

5,200 5,200 60,625 60,625

22,855 22,855 4,950 4,950 4,200 4,200 2,715 2,715 890 890 315 315 1,505 1,505 106,390 106,390 106,390 106,390

Ilustrative Problem (Page 122)Solution

No 1 Journal

Date Description2010

July 31 Supplies expenseSupplies

Supplies used ($1.270 -$380)

31 Insurance expense Prepaid Insurance

Insurance expired.

31 Depreciation expenseAccumulated Depreciation- Office Equipment

Depreciation expense.

31 Wages expenseWages Payable

Accrued wages

31 Accounts ReceivableFees Earned

Accrued fees

31 Unearned FeesFees Earned

Fees Earned ($1.250-$750)

No. 2 Harbor RealtyAdjusted Trial Balance

Juli 31, 2010

Cash …………………………………………………………………………………………………………….……Accounts Receivable ………………………………………………………………………………….…...Supplies………………………………………………………………………….………………………………..Prepaid Insurance ……………………………………………………………….…………………………..

Post Ref.

Office Equipment …………………….……………….……………………………………………………..Accumulated Depreciation-Office Equipment .….……………………………………………Account Payable …………………………………………………….…………………………………………Wages Payable ……….…….…..……………………………………………………………………………..Unearned Fees …..……….……………………………………………………………………………………T. Roderick, Capital …….………………………………………………………………………………….…T. Roderick, Drawing ….…………………………………………………………………………………….Fees Earned ……………….…………..……………………………………………………….……………….Wages Expense ………….…………………………………………………………………………………….Depreciation Expense ….…………………………………………………………………………………..Rent Expense …………….…………………………………………………………………………………….Utilities Expense ………………………….………………………………………………………………….Supplies Expense ……….……………………………………………………………………………………Insurance Expense ……….………………………………………………………………………………….Miscellaneous Expense ……………….………………………………………………………………….

Journal

Debit Credit

890890

315315

4,9504,950

440440

1,0001,000

500500

Harbor RealtyAdjusted Trial Balance

Juli 31, 2010

Debit Balance

3,4258,000

380305

Credit Balance

51,65014,650

925440750

29,0005,200

60,62522,855

4,9504,2002,715

890315

1,505106,390 106,390