Fundamentals of Accounting Assignment 2 Due in Two Days Marks: 7
Rainmaker Environmental Consultants is just finishing its second year of operations. The companys unadjusted trial balance at October 31, 2011, follows:
Rainmaker Environmental Consultants
Unadjusted Trial Balance
October 31, 2011
Acct.
No. Account Debit Credit
101 Cash
. $ 28,000 106 Accounts receivable
. 56,000 109 Interest receivable
. -0- 111 Notes receivable
. 30,000 126 Supplies
.. 4,600 128 Prepaid insurance
.. 9,350 131 Prepaid rent
21,000 161 Office furniture
. 61,440 162 Accumulated depreciation, office furniture
. $ 20,480
201 Accounts payable
..
. 35,000
210 Wages payable
.. -0-
233 Unearned consulting fees
. 13,160
301 Jeff Moore, capital
.. 60,000
302 Jeff Moore, withdrawals
16,450 401 Consulting fees earned
.. 314,600
409 Interest revenue
. 1,400
601 Depreciation expense, office furniture
.. -0- 622 Wages expense
..
. 147,000 637 Insurance expense
..
. -0- 640 Rent expense
. 64,000 650 Supplies expense
6,800
Totals $444,640 $444,640
Rainmaker prepares adjustments each October 31. The following additional information is available on October 31, 2011.
a. It was determined that $5,000 of the unearned consulting fees had yet been earned.
b. It was discovered that $12,800 of the balance in the Consulting Fees Earned account was for services to be performed in November.
c. The balance in the Prepaid Rent account represents three months of rent beginning September 1, 2011.
d. Accrued wages at October 31 totaled $7,700.
e. The office furniture was purchased on May 1, 2010, and has an estimated useful life of four years. After two years of use, it is expected that the furniture will be worthless. f. Accrued consulting fees at year-end totaled $4,940.
g. Interest of $325 had accrued on the note receivable for the month of October. h. The balance in the Prepaid Insurance account represents the remaining balance of a two-year policy purchased on August 1, 2010. i. A count of the supplies on October 31 revealed a balance remaining of $660.
Required
a) Prepare the annual adjusting journal entries for October 31, 2011, based on the above (use Excel).
b) Complete the adjusted trial balance worksheet (use Excel).
