Determining Adjusting Entries, Posting to T Accounts, and Preparing an Adjusted Trial Balance The…

Determining Adjusting Entries, Posting to T Accounts, and Preparing an Adjusted Trial Balance The trial balance for Financial Strategies Service, Inc., on December 31 is presented on the following page. The following information is also available: a. Ending inventory of office supplies, $264. b. Prepaid rent expired, $440. c. Depreciation of office equipment for the period, $660. d. Accrued interest expense at the end of the period, $550. e. Accrued salaries at the end of the period, $330. f. Service revenue still unearned at the end of the period, $1,166. g. Service revenue earned but unrecorded, $2,200. h. Estimated income taxes for the period, $4,000. Required 1. Open T accounts for the accounts in the trial balance plus the following: Interest Payable; Salaries Payable; Income Taxes Payable; Office Supplies Expense; Depreciation Expense–Office Equipment; Interest Expense; and Income Taxes Expense. Enter the balances shown on the trial balance. 2. Determine the adjusting entries and post them directly to the T accounts. 3. Prepare an adjusted trial balance. 4. User insight: What financial statements do each of the above adjustments affect? What financial statement is not affected by the adjustments?  

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