Studyportal

The following accounts and balances have been taken from the general ledger trial balance of Daiton Repairs Limited as at October 31, 19×2, after its first year of operation. Adjusting entries have not yet been made for the year. Accounts Accounts Payable $ 2,550 Accounts Receivable 4,560 Advertising Expense 2,540 Cash 3,890 Common Stock 20,000 Equipment 15,700 Furniture 6,300 Insurance Expense 1,100 Miscellaneous General Expense 1,650 Notes Receivable 3,500 Office Supplies Expense 500 Rent Expense 16,900 Repair Revenue 95,100 Repair Supplies Expense 1,870 Salaries Expense 36,250 Truck 21,000 Utilities Expense 1,890 Additional Information: a.Daiton RepairsLtd.was required to pay its last month for rent at the time of signing a 5–]year lease. Nb. The rent expense of $ 16,900 includes one month rent as a security deposit. b.The physical inventory taken October 31 showed that the repair supplies on hand were $ 360. c.Asset Est Useful Life Salvage Value Equipment 10 years $ 1,900 Furniture 5 years 600 Truck 3 year s1,200 All assets were purchased on November 1, 19×1. Use straight line method of depreciation d. The company paid $ 500 advertising bill for television and radio ads to being in November 19×2 e.The insurance premiums of 410 were paid in October 19×2 were for the policy that begins in November 19×2 f. The company received $ 580 cash for work to be completed in November 19×2. The credit side of the entry was posted in the Revenue account. Required: Prepare the appropriate adjusting entries