The unadjusted trial balance of James Business Consulting at December 31,2018,and the data for the adjustments follow:
James Business Consulting
Unadjusted Trial Balance
December 31,2018

\begin{array}{|l|r|r|} \hline&\text { Balance } & \text { Balance } \\\hline \text { Cash } &\$ 40,000 \\\hline \text { Accounts Receivable } & 12,000 \\\hline \text { Prepaid Insurance } & 3,000 \\\hline \text { Office Supplies } & 6,000\\\hline \text { Accounts Payable } & & \$ 5,000 \\\hline \text { Advertising Payable } & & 0 \\\hline \text { Tames, Capital } & & 37,000 \\\hline \text { James, Withdrawals } & 5,000 & \\\hline \text { Service Revenue } & & 44,000 \\\hline \text { Advertising Expense } & 500 & \\\hline \text { Insurance Expense } & 1,500\\\hline \text { Office Supplies Expense } & 0 \\\hline \text { Rent Expense } & 6,000 \\\hline & \\\text { Salaries Expense } & 12,000\\\hline\text { Total } & \$ 86,000 & \$ 86,000 \\\hline\end{array}

Data for adjustments:
a.James prepaid 6 months of business insurance on September 30,2018,with coverage beginning on October 1.James treats deferred expenses initially as assets.
b.A physical count of office supplies was made on December 31,2018.This count showed a balance of $4,200 office supplies on hand.
c.On December 31,2018,James received a bill for the November and December advertising in a local newspaper,$800.This bill will be paid on its due date,which is 1/10/2019.
James is preparing financial statements for the quarter ending December 31,2018.
Requirements
1.Journalize the adjusting entries on December 31,2018.
2.Prepare the December 31,2018 adjusted trial balance.Use a proper heading.

The Accountant of Newton Legal Services Failed to Make an Adjusting

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge