The Trial Balances of Orton Company Follow with the Accounts

Essay

The trial balances of Orton Company follow with the accounts arranged in alphabetic order. Analyze the data and prepare (a) the adjusting entries and (b) the closing entries made by Orton Company. $\begin{array}{lrrr}&&\text { Trial Balances }\\\hline& \text { Unadiusted } & \text { Adjusted } & \text { Post-Closing }\\\hline\text { Accounts Payable } & \$ 10,000 & \$ 10,000 & \$ 10,000 \\\text { Accounts Receivable } & 2,200 & 2,200 & 2,200 \\\text { Accumulated Depreciation-Equipment } & 13,000 & 17,000 & 17,000 \\\text { Insurance Expense } & 0 & 16,300 & 0 \\\text { Cash } & 37,000 & 37,000 & 37,000\\\text { Depreciation Expense } & 0 & 4,000 & 0 \\\text { Equipment } & 75,000 & 75,000 & 75,000 \\\text { Owner's Capital } & 82,200 & 82,200 & 93,400 \\\text { Owner's Drawings } & 11,000 & 11,000 & 0 \\\text { Prepaid insurance } & 17,800 & 1,500 & 1,500 \\\text { Prepaid Rent } & 15,000 & 11,000 & 11,000\\\text { Rent Expense } & 0 & 4,000 & 0 \\\text { Service Revenue } & 96,000 & 96,000 & 0 \\\text { Supplies } & 3,200 & 700 & 700 \\\text { Supplies Expense } & 2,000 & 4,500 & 0 \\\text { Salaries and Wages Expense } & 38,000 & 45,000 & 0 \\\text { Salaries and Wages Payable } & 0 & 7,000 & 7,000\end{array}$