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Chapter 3: 15SE (page 161)

Question :Just Right Hair Stylists has begun the preparation of its worksheet as follows:


Year-end data include the following: a. Office supplies on hand, \(300. b. Depreciation, \)700. c. Accrued interest expense, $800. Complete Just Right’s worksheet through the adjusted trial balance section. In the adjustments section, mark each adjustment by letter

Short Answer

Expert verified

Worksheet are as follows:

JUST RIGHT HAIR STYLISTS

Worksheet

December 31, 2018

Unadjusted Trial Balance

Adjustments

Adjusted Trial Balance

Account Names

Debit

Credit

Debit

Credit

Debit

Credit

Cash

$300

$300

Office Supplies

900

$600

300

Equipment

20,600

20,600

Accumulated Depreciation—Equipment

$700

700

$1400

Accounts Payable

500

500

Interest Payable

800

800

Note Payable

2,800

2,800

Common Stock

4,200

4,200

Service Revenue

17,500

17,500

Rent Expense

3,200

3,200

Supplies Expense

600

600

Depreciation Expense—Equipment

700

700

Interest Expense

700

800

1,500

Total

$25,700

$25,700

$2,100

$2,100

$27,200

$27,200

Step by step solution

01

Step-by-Step-SolutionStep1: Explanation on  Worksheet

As per the worksheet, in adjustment section total debits and credits equals $2,100, and in adjusted trial balance equals total debits and credits equals $27,200.

02

Calculation of Office Supplies Expense

Office supplies expense is calculated as follows:

OfficeSuppliesUsed=OfficeSuppliesBalanceBeforeAdjustment-OfficeSuppliesonHand=$900-$300=$600

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Most popular questions from this chapter

Question :At the beginning of the year, office supplies of \(1,200 were on hand. During the year, Tempo Air Conditioning Service paid \)4,000 for more office supplies. At the end of the year, Tempo has $800 of office supplies on hand. Requirements 1. Record the adjusting entry assuming that Tempo records the purchase of office supplies by initially debiting an asset account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance and purchase of office supplies in the Office Supplies T-account. 2. Record the adjusting entry assuming that Tempo records the purchase of office supplies by initially debiting an expense account. Post the adjusting entry to the Office Supplies and Supplies Expense T-accounts. Make sure to include the beginning balance in the Office Supplies T-account and the purchase of office supplies in the Supplies Expense T-account. 3. Compare the ending balances of the T-accounts under both approaches. Are they the same?

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Identify the impact on the income statement and balance sheet if adjusting entries for the following situations were not recorded. a. Office Supplies used, \(800. b. Accrued service revenue, \)4,000. c. Depreciation on building, \(3,500. d. Prepaid Insurance expired, \)650. e. Accrued salaries expense, \(2,750. f. Service revenue that was collected in advance has now been earned, \)130

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