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Kenseth Corporation’s unadjusted trial balance at December 1, 2014, is presented below.

DebitCreditCash$22,000Accounts Receivable36,800Notes Receivable10,000Interest Receivable0Inventory36,200Prepaid Insurance3,600Land20,000Buildings150,000Equipment60,000Patent9,000Allowance for Doubtful Accounts$500Accumulated Depreciation—Buildings50,000Accumulated Depreciation—Equipment24,000Accounts Payable27,300Salaries and Wages Payable0Notes Payable (due April 30, 2015)11,000Income Taxes Payable0Interest Payable0Notes Payable (due in 2020)35,000Common Stock50,000Retained Earnings63,600Dividends12,000Sales Revenue900,000Interest Revenue0Gain on Disposal of Plant Assets0Bad Debt Expense0Cost of Goods Sold630,000Depreciation Expense0Income Tax Expense0Insurance Expense0Interest Expense0Other Operating Expenses61,800Amortization Expense0Salaries and Wages Expense110,000Total$1,161,400$1,161,400\begin{array}{lccc} &\underline{\textbf{Debit}}&\underline{\textbf{Credit}}\\[5pt] \text{Cash}&\text{\$\hspace{14pt}22,000}\\ \text{Accounts Receivable}&\text{\hspace{19pt}36,800}\\ \text{Notes Receivable}&\text{\hspace{19pt}10,000}\\ \text{Interest Receivable}&\text{\hspace{42pt}0}\\ \text{Inventory}&\text{\hspace{19pt}36,200}\\ \text{Prepaid Insurance}&\text{\hspace{24pt}3,600}\\ \text{Land}&\text{\hspace{19pt}20,000}\\ \text{Buildings}&\text{\hspace{14pt}150,000}\\ \text{Equipment}&\text{\hspace{19pt}60,000}\\ \text{Patent}&\text{\hspace{24pt}9,000}\\ \text{Allowance for Doubtful Accounts}&&\text{\$\hspace{27pt}500}\\ \text{Accumulated Depreciation—Buildings}&&\text{\hspace{19pt}50,000}\\ \text{Accumulated Depreciation—Equipment}&&\text{\hspace{19pt}24,000}\\ \text{Accounts Payable}&&\text{\hspace{19pt}27,300}\\ \text{Salaries and Wages Payable}&&\text{\hspace{42pt}0}\\ \text{Notes Payable (due April 30, 2015)}&&\text{\hspace{19pt}11,000}\\ \text{Income Taxes Payable}&&\text{\hspace{42pt}0}\\ \text{Interest Payable}&&\text{\hspace{42pt}0}\\ \text{Notes Payable (due in 2020)}&&\text{\hspace{19pt}35,000}\\ \text{Common Stock}&&\text{\hspace{19pt}50,000}\\ \text{Retained Earnings}&&\text{\hspace{19pt}63,600}\\ \text{Dividends}&\text{\hspace{19pt}12,000}\\ \text{Sales Revenue}&&\text{\hspace{14pt}900,000}\\ \text{Interest Revenue}&&\text{\hspace{42pt}0}\\ \text{Gain on Disposal of Plant Assets}&&\text{\hspace{42pt}0}\\ \text{Bad Debt Expense}&\text{\hspace{42pt}0}\\ \text{Cost of Goods Sold}&\text{\hspace{14pt}630,000}\\ \text{Depreciation Expense}&\text{\hspace{42pt}0}\\ \text{Income Tax Expense}&\text{\hspace{42pt}0}\\ \text{Insurance Expense}&\text{\hspace{42pt}0}\\ \text{Interest Expense}&\text{\hspace{42pt}0}\\ \text{Other Operating Expenses}&\text{\hspace{19pt}61,800}\\ \text{Amortization Expense}&\text{\hspace{42pt}0}\\ \text{Salaries and Wages Expense}&\underline{\text{\hspace{14pt}110,000}}&\underline{\text{\hspace{45pt}}}\\ \text{Total}&\underline{\underline{\text{\$\hspace{1pt}1,161,400}}}&\underline{\underline{\text{\$\hspace{1pt}1,161,400}}}\\ \end{array}

The following transactions occurred during December.

Dec.  2 Purchased equipment for $16,000, plus sales taxes of$800 (paid in cash).
      2 Kenseth sold for $3,500 equipment which originally cost$5,000. Accumulated depreciation on this equipment at January 1, 2014, was $1,800; 2014 depreciation prior to the sale of equipment was$825.
     15 Kenseth sold for $5,000 on account inventory that cost$3,500.
     23 Salaries and wages of $6,600 were paid.

Adjustment data:

  1. Kenseth estimates that uncollectible accounts receivable at year-end are$4,000.
  2. The note receivable is a one-year, 8% note dated April 1, 2014. No interest has been recorded.
  3. The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2014.
  4. The building is being depreciated using the straight-line method over 30 years. The salvage value is$30,000.
  5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost.
  6. The equipment purchased on December 2, 2014, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,800.
  7. The patent was acquired on January 1, 2014, and has a useful life of 9 years from that date.
  8. Unpaid salaries at December 31, 2014, total$2,200.
  9. Both the short-term and long-term notes payable are dated January 1, 2014, and carry a 10% interest rate. All interest is payable in the next 12 months.
  10. Income tax expense was $15,000. It was unpaid at December 31.


(b) Prepare an adjusted trial balance at December 31, 2014.


The worksheet of Best Jobs Employment Service follows but is incomplete.

April 30, 2018
Account Names
Unadjusted Trial Balance
Adjusted Trial Balance
$     1,100
Accounts Receivable
Office Supplies
Accumulated Depreciation - Equipment
$   13,900
Salaries Payable
Common Stock
Service Revenue
Salaries Expense
Rent Expense
Depreciation Expense - Equipment
Supplies Expense
$ 48,100
$ 48,100

The following data at April 30, 2018, are given for Best Jobs Employment Service:

  • a. Service revenue accrued, $700.
  • b. Office supplies used,$300.
  • c. Depreciation on equipment, $1,300.
  • d. Salaries owed to employees,$1,400.


  1. Calculate and enter the adjustment amounts directly in the Adjustments columns. Use letters *a *through d to label the four adjustments.
  2. Calculate and enter the adjusted account balances in the Adjusted Trial Balance columns.
  3. Prepare each adjusting journal entry calculated in Requirement 1. D ate the entries, and include explanations.


Answered 1 year ago
Answered 1 year ago
Step 1
1 of 6

To help us easily prepare the adjusted trial balance, it would be better if we make the necessary adjusting entries first, which is the requirement 3. From there, we can start preparing the adjusted trial balance.

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