Tuesday 31 July 2012


Exercise 3-13 & 14
The trial balances before and after adjustment for Garcia Company at the end of its fiscal
year are presented below.
GARCIA COMPANY
Trial Balance
August 31, 2008
Before After
Adjustment Adjustment
Dr. Cr. Dr. Cr.
Cash $10,400 $10,400
Accounts Receivable 8,800 9,800
Office Supplies 2,300 700
Prepaid Insurance 4,000 2,500
Office Equipment 14,000 14,000
Accumulated Depreciation—Office Equipment $ 3,600 $ 4,500
Accounts Payable 5,800 5,800
Salaries Payable –0– 1,100
Unearned Rent 1,500 600
Common Stock 10,000 10,000
Retained Earnings 5,600 5,600
Service Revenue 34,000 35,000
Rent Revenue 11,000 11,900
Salaries Expense 17,000 18,100
Office Supplies Expense –0– 1,600
Rent Expense 15,000 15,000
Insurance Expense –0– 1,500
Depreciation Expense –0– 900
$71,500 $71,500 $74,500 $74,500
Instructions
Prepare the adjusting entries that were made.
Exercise 3-14
The adjusted trial balance for Garcia Company is given in E3-13.



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