The following data are taken from an unadjusted trial balance at December 31, 2016:
|
Prepaid rent |
$ 600 |
|
Office supplies |
700 |
|
Income taxes payable |
-0- |
|
Unearned commissions revenue |
1,500 |
|
Salaries expense |
5,000 |
Additional Information:
|
a. |
The prepaid rent consisted of a payment for three months’ rent at $200 per month for December 2016, January 2017, and February 2017. |
|
b. |
Office supplies on hand at December 31, 2016 amounted to $300. |
|
c. |
The estimated income taxes for 2016 are $5,000. |
|
d. |
All but $500 in the Unearned Commissions account has been earned in 2016. |
|
e. |
Salaries for the last three days of December amounting to $300 have not yet been recorded. |
Required:
- Prepare all necessary adjusting entries in general journal format at December 31, 2016. General ledger account numbers are not necessary.
- Calculate the cumulative financial impact on assets, liabilities, shareholders’ equity, revenue and expense if these adjusting entries are not made.
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