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Chapter 3: Q 37PGA-1 (page 173)

Greavy Theater Production Company’s partially completed worksheet as of December 31, 2018, follows. Adjustment data at December 31 follow: a. As of December 31, Greavy had performed \(500 of service revenue but has not yet billed customers. b. At the end of the month, Greavy had \)700 of office supplies remaining. c. Prepaid Insurance of \(3,900 remained. d. Depreciation expense, \)4,000. e. Accrued salaries expense of $200 that hasn’t been paid yet. Requirements 1. Complete the worksheet. Use letters a through e to label the five adjustments. 2. Journalize the adjusting entries.

Short Answer

Expert verified

Worksheet is as follows:

GREAVY THEATER PRODUCTION COMPANY
Worksheet
December 31, 2018









Account NamesUnadjusted Trial Balance
AdjustmentsAdjusted Trial Balance
Debit
Credit

Debit
Credit

Debit
Credit

Cash

$4,300

$4,300

Accounts Receivable

5,900

(a)

$500

6,400

Office Supplies

1,900

$1,200

(b)

700

Prepaid Insurance

4,550

650

(c)

3,900

Equipment

30,000

30,000

Accumulated Depreciation—Equipment

$7,600

4,000

(d)

11,600

Accounts Payable

3,600

3,600

Salaries Payable

$200

(e)

200

Common Stock

21,950

21,950

Dividends

30,500

30,500

Service Revenue

77,000

500

(a)

77,500

Depreciation Expense—Equipment

(d)

4,000

4,000

Supplies Expense

(b)

1,200

1,200

Utilities Expense

5,500

5,500

Salaries Expense

27,500

(e)

200

27,700

Insurance Expense

(c)

650

650

Total

$110,150

$110,150

$6,550

$6,550

$114,850

$114,850

Step by step solution

01

Step-by-Step-SolutionStep 1: Calculation of Supplies Expense

Supplies expense is calculated as follows:

SuppliesExpense=UnadjustedBalance-EndingBalance=$1,900-$700=$1,200

02

Calculation of Insurance Expense

Insurance expense is calculated as follows:

InsuranceExpense=UnadjustedBalancePrepaidInsurance-EndingBalance=$4,550-$3,900=$650

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