The Signage Company specializes in the maintenance and repair of signs, such as billboards. On March 31, 2019

The Signage Company specializes in the maintenance and repair of signs, such as billboards. On March 31, 2019, the accountant for The Signage Company prepared the trial balances shown at the top of the following page.

The Signage Company Trial Balances March 31, 2019 Unadjusted Adjusted Debit Balances Cash . . . . . . . . . . .  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,750 4,750 Accounts Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,400 17,400 Supplies  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200 2,175 Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 1,150 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 100,000 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,000 170,000 Accumulated Depreciation—Buildings. . . . . . . . . . . . . . . . 51,500 61,000 Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 75,000 Accumulated Depreciation—Trucks. . . . . . . . . . . . . . . . . . . 12,000 17,000 Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,920 8,750 Salaries Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,400 Unearned Service Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,500 3,850 Mary Bakken, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256,400 256,400 Mary Bakken, Drawing  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500 7,500 Service Fees Earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,680 169,330 Salary Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000 81,400 Depreciation Expense—Trucks . . . . . . . . . . . . . . . . . . . . . . . — 5,000 Rent Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,900 11,900 Supplies Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 4,025 Utilities Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200 8,030 Depreciation Expense—Buildings . . . . . . . . . . . . . . . . . . . . — 9,500 Taxes Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,900 2,900 Insurance Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  — 7,850 Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     9,150                   9,150               500,000 500,000 517,730 517,730

Instructions

Journalize the seven entries that adjusted the accounts at March 31. None of the accounts were affected by more than one adjusting entry.

Answer:

 2019

 Mar. 31 Supplies Expense4,025

Supplies4,025

Supplies used ($6,200 – $2,175).

31 Insurance Expense7,850

Prepaid Insurance7,850

Insurance expired ($9,000 – $1,150).

31 Depreciation Expense—Buildings 9,500

Accumulated Depreciation—Buildings 9,500

Depreciation ($61,000 – $51,500).

31 Depreciation Expense—Trucks 5,000

Accumulated Depreciation—Trucks5,000

Depreciation ($17,000 – $12,000).

31 Utilities Expense1,830

Accounts Payable1,830

Accrued utilities expense

($8,750 – $6,920, or $8,030 – $6,200).

31 Salary Expense1,400

Salaries Payable1,400

Accrued salaries ($81,400 – $80,000).

31 Unearned Service Fees6,650

Service Fees Earned6,650

Service fees earned ($10,500 – $3,850, or

$169,330 – $162,680).