Introduction to Accounting Dr Dina Kerema
Fall 2018 TA Salma Adam
Adjusting Entries
Problem #1:
You have the following trial balance at Dec. 31 2018
CR
DR
Account title
50,000
Salaries expense
20,000
Prepaid rent
100,000
Service revenue
30,000
Unearned consulting fees
The following is additional information not yet recorded:
1- salaries earned by employees but not yet paid 10,000 L.E.
2- the monthly rent 1,000 L.E starting from Jan 2018.
3- service revenue earned but not yet collected 50,000 L.E .
4- the consulting fees earned during the period 20,000 L.E .
Required:
1- prepare the necessary adjusting entries on Dec 31,2018.
