Haupt Consulting Adjusted Trial Balance December 18, 2010 Balance Account Title Debit Credit Cash $8,100 Accounts Receivable 1,700 Supplies 300 Equipment 2,000 Accumulated depreciation – equipment Furniture 3,600 Accumulated depreciation -furniture Accounts Payable $3,900 Salary Payable Unearned service revenue Carl Haupt, Capital 10,000 Carl Haupt, Withdrawals Service Revenue 2,500 Rent expense 500 Utilities expense 200 Salary Expense Depreciation expense -equipment Depreciation expense -furniture Supplies expense Total $16,400 $16,400 Later in December, the business completed these transactions, as follows: Dec 21: Received $900 in advance for client service to be performed evenly over the next 30 days. Dec 21: Hired secretary to be paid $1,500 on the 20th day of each month. The secretary begins working immediately. Dec 26: Paid $300 on account Dec 28: Collected $600 on account Dec 30: Owner withdrew $1,600 Requirements 1. Open these additional T-accounts: Accumulated depreciation-equipment; Accumulated depreciation-furniture; Salary payable; Unearned service revenue; Depreciation expense-equipment; Depreciation expense-furniture; Supplies expense. 2. Journalize the transactions of Dec 21-30. 3. Post to the T-accounts, keying all items by date 4. Prepare a trial balance at December 31. Also set up columns for the adjustments and for the adjusted trial balance. 5. At December 31, the business gathers the following information for the adjusting entries: a. Accrued service revenue, $4,00 b. Earned $300 of the service revenue collected in advance on December 21 c. Supplies on hand, $100 d. Depreciation expense-equipment, $33; furniture, $60 e. Accrued $700 expense for secretary’s salary On your work sheet make these adjustments directly in the adjustments columns, and complete the adjusted trial balance at December 31. Throughout the book, to avoid rounding errors, we base adjusting entries on 30-day months and 360-day years. 6. Journalize and post the adjusted entries. In the T-accounts denote each adjusting amount as Adjand an account balance as Bal. 7. Prepare the income statement and the statement of owner’s equity of Haupt Consulting for the month ended December 31, 2010, and prepare the balance sheet at that date. This problem continues the Haupt Consulting situation from Problem 3-43. Start from the posted T-accounts and the adjusted trial balance that Haupt Consulting prepared for the company at December 31: Haupt Consulting Adjusted Trial Balance December 18, 2010 31, 2010 Balance Account Title Debit Credit Cash $7,700 Accounts Receivable 1,500 Supplies 100 Equipment 2,000 Accumulated depreciation – equipment $33 Furniture 3,600 Accumulated depreciation -furniture 60 Accounts Payable $3,600 Salary Payable 700 Unearned service revenue 600 Carl Haupt, Capital 10,000 Carl Haupt, Withdrawals 1,600 Service Revenue 3,200 Rent expense 500 Utilities expense 200 Salary Expense 700 Depreciation expense -equipment 33 Depreciation expense -furniture 60 Supplies expense 200 Total $18,193 $18,193 Requirements Complete the accounting work sheet at December 31. Journalize and post the closing entries at December 31. Denote each closing amount as Clo and an account balance as Bal. Prepare a classified balance sheet at December 31.