At the end of its quarter of operations, Margie Marketing Services has the following unadjusted trial balance

Margie Marketing Service

Trial Balance
February 28, 2022
Dr. Cr.
cash $ 25,600
Account receivable 18,000
supplies 5,600
prepaid insurance 18,500
land for investment 23,000
equipment 60,000
accumulated depreciation - equipment $ 28,000
building 50,000
accumulated depreciation - building $ 19,000
goodwill 26,300
notes payable $ 45,000
accounts payable 35,000
unearned service revenue $ 10,000
mortgage payable 50,000
owner's capital 30,000
owner's drawing 5,400
service revenue 40,000
salaries and wages expense 7,000
utilities expense 12,000
advertising expense 5,600
total $ 257,000 $ 257,000

The adjusting entries that should be prepare are:

1 Assume we perform 1/4 the service we owe.
2 The mortgage requires Margie to pay interest at an annual rate of 10%.
3 $2,500 of supplies are on hand at February 28, 2022
4 In February Margie performed services worth $15,000 that were not billed to clients on or before Feb
5 Insurance balance is for a year, calculate the amount that expires for the quarter.
6 The salary owe to Margie's employees on February 28, 2020 is $25,000
7 Assume that depreciation on the equipment is $24,000 a year, and the depreciation for the building is

Instructions
a) Jornalize y post the adjusting entries. (Value 127)
b) Prepare the adjusted trial balance. (Value 54)
c) Prepare the income statement (Value 34), the statement of owner’s equity (Value 27) and a cla
d) Jornalize and post the closing entries (Value 116)
 e) Prepare a post-closing trial balance. (Value 45)

a) Jornalize y post the adjusting entries. (Value 2

GENERAL JOURNAL J-14

Date Account Title and Explanation Ref Debit
Adjusting Entries

28-Feb Unearned Service Revenue 215 2,500.00

Service Revenue 400

Interest Expense 632 1,250.00

Interest payable 220

Supplies Expense 625 3,100.00

Supplies 110

Accounts Receivable 105 15,000.00

Service Revenue 400

Insurance Expense 620 4,625.01

Prepaid Insurance 115

Salaries and Wages Expense 600 25,000.00

Salaries and Wages Payable 225

Depreciation Expense 630 11,250.00

Accumulate Depreciation Expense 125
Accumulate Depreciation Building 132

Closing Entries

Feb-28 Service Revenue 400 57,500.00

Income Summary 638

Income Summary 638 69,825.01

 Salaries and Wages Expense 600
Utilities Expense 610
Advertising Expense 615
Insurance Expense 620
Supplies Expense 625
Depreciation Expense 630
Interest Expense 632

Owner's Capital 300

Income Summary 638 (12,325.01)

Owner's Capital 300 5,400.00

Owner's Drawings 310

GENERAL LEDGER
cash
Date Explanation Ref Debit
28-Feb ✓ 25,600.00

accounts receivable
Date Explanation Ref Debit
28-Feb ✓ 18,000.00
J-14 2,500.00
J-14 15,000.00

supplies
Date Explanation Ref Debit
28-Feb ✓ 5,600.00
J-14

prepaid insurance No
Date Explanation Ref Debit
 28-Feb ✓ 18,500.00
J-14

land for investment

Date Explanation Ref Debit
28-Feb ✓ 23,000.00

equipment
Date Explanation Ref Debit
28-Feb ✓ 60,000.00

accumulated depreciation - equipment

Date Explanation Ref Debit
28-Feb ✓
J-14

building
Date Explanation Ref Debit
28-Feb ✓ 50,000.00

accumulated depreciation - building

Date Explanation Ref Debit
28-Feb ✓

goodwill
Date Explanation Ref Debit
 28-Feb ✓ 26,300.00

Notes payable
Date Explanation Ref Debit
28-Feb ✓

accounts payable
Date Explanation Ref Debit
28-Feb ✓

unearned service revenue

Date Explanation Ref Debit
28-Feb ✓

Mortgage payable
Date Explanation Ref Debit
28-Feb ✓

interest payable
Date Explanation Ref Debit
28-Feb J-14

salaries and wages payable

Date Explanation Ref Debit
28-Feb J-14
 owner's capital
Date Explanation Ref Debit
28-Feb ✓
J-14 12,325.01
J-14 5,400.00

owner's drawings
Date Explanation Ref Debit
28-Feb ✓ 5,400.00
J-14

service revenue
Date Explanation Ref Debit
28-Feb ✓
J-14
J-14
J-14 57,500.00

salaries and wages expenses

Date Explanation Ref Debit
28-Feb ✓ 7,000.00
J-14 25,000.00
J-14

utilities expense
Date Explanation Ref Debit
28-Feb ✓ 12,000.00
J-14

advertising expense
Date Explanation Ref Debit
28-Feb ✓ 5,600.00
J-14
 insurance expense
Date Explanation Ref Debit
28-Feb J-14 4,625.01
J-14

supplies expense
Date Explanation Ref Debit
28-Feb J-14 3,100.00
J-14

depreciation expense
Date Explanation Ref Debit
Feb-28 J-14 11,250.00
J-14

interest expense
Date Explanation Ref Debit
28-Feb J-14 1,250.00
J-14

Income Summary
Date Explanation Ref Debit
28-Feb J-14
J-14

Margie Marketing Service

 Adjusted Trial Balance
Magaly Hernandez:
28-Feb-22 February 28, 2022
Debit Credit
Cash $ 25,600.00
Account Receivable 35,500.00
Supplies 2,500.00
Prepaid Insurance 13,874.99
Land for Investment 23,000.00
Equipment 60,000.00
Accumulated Depreciation- Equipment $ 34,000.00
Building 50,000.00
Accumulated Depreciation- Building 24,250.00
Goodwill 26,300.00
Notes Payable 45,000.00
Accounts Payable 35,000.00
Uneaarned Service Revenue 10,000.00
Mortgage Payable 50,000.00
Interest Payable 1,250.00
Salaries and Wages Payable 25,000.00
Owner's Capital 30,000.00
Owner's Drawing 5,400.00
Service Revenue 57,500.00
Salaries and Wages Expenses 32,000.00
Utilities Expense 12,000.00
Advertising Expense 5,600.00
Insurance Expense 4,625.01
Supplies Expense 3,100.00
Depreciation Expense 11,250.00
Interest Expense 1,250.00
Total $ 312,000.00 $ 312,000.00

Margie Marketing Service

Income Statement
For the month ended, February 28, 2022
Revenues
Service Revenue $ 57,500.00

Expenses
Salaries and Wages Expenses $ 32,000.00
Utilities Expense 12,000.00
 Advertising Expense 5,600.00
Insurance Expense 4,625.01
Supplies Expense 3,100.00
Depreciation Expense 11,250.00
Interest Expense 1,250.00
Total Expenses 69,825.01

Net Loss: $ (12,325.01)

Margie Marketing Service

Statement of Owner's Equity
Magaly Hernandez:
28-Feb-22 For the quarter ended,
Owner's Capital February 1, 2022 February 28, 2022
Add: Net Income 30,000.00
Less: Net Loss 12,325.01
Owner's Drawing 5,400.00 17,725.01
Owner's Capital, February 28, 2022 $ 12,274.99

Margie Marketing Service

Balance Sheet
February 28,2022
Assets
Cash $ 25,600.00
Accounts Receivable 28,000.00
Supplies 2,600.00
Prepaid Insurance 16,187.00

Fixed Assets
Land for Investment 23,000.00
Equipment 60,000.00
Accumulated Depreciation- Equipment (31,000.00)
Building 50,000.00
Accumulated Depreciation- Building (21,625.00)

Intangible Assets
Goodwill 26,300.00

Total Assets $ 179,062.00

Current Liabilities
Notes Payable 45,000.00
Accounts Payable 35,000.00
Salaries and Wages Payable 17,000.00
Unearned Service Revenue 5,000.00
Mortgage Payable 50,000.00
Interest Payable 1,750.00

Equity
Owner's Capital 30,000.00
RetainedbEarnings (4,688.00)

Total Equity and Liabilities $179,062

INSERT THE NAME OF THE COMPANY

Post-Closing Trial Balance
INSERT THE DATE
Debit Credit
Assets $ 25,600.00
Account Receivable 28,000.00
Supplies 2,600.00
Prepaid Insurance 16,187.50
Land for Investment 23,000.00
Equipment 60,000.00
Accumulated Depreciation- Equipment $ 31,000.00
Building 50,000.00
Accumulated Depreciation- Building 21,625.00
Goodwill 26,300.00
Notes Payable 45,000.00
Accounts Payable 35,000.00
Salaries and Wages Payable 10,000.00
Interest Payable 1,750.00
Unearned Service Revenue 5,000.00
Mortgage Payable 50,000.00
Owner's Capital 32,312.50
Total: $ 231,687.50 $ 231,687.50
lowing unadjusted trial balance

ot billed to clients on or before February.

es for the quarter.

d the depreciation for the building is $21,000 per year

127
54
owner’s equity (Value 27) and a classified balance sheet (Value 58). 119
116
 45
Total value 461

AL J-14 47
Credit

2,500.00

1,250.00

3,100.00

15,000.00

4,625.01

Magaly Hernandez:
25,000.00 accumulated depreciation
- equipment.

6,000.00
5,250.00
Magaly Hernandez:
se debita service revenue
y se acredita income
summary 43
Closing entries
57,500.00
 32,000.00
12,000.00
5,600.00
4,625.01
3,100.00
11,250.00
1,250.00

(12,325.01)

5,400.00

h No.101 48 adj ent

Credit Balance 36closing entries
25,600.00

ceivable No.105
Credit Balance
18,000.00
20,500.00
35,500.00

pplies No.110
Credit Balance
5,600.00
3,100.00 2,500.00

surance No.____115
Credit Balance
 18,500.00
4,625.01 13,874.99

or investment No.118
Credit Balance
23,000.00

ment No.120
Credit Balance
60,000.00

iation - equipment No.125

Credit Balance
28,000.00 28,000.00
6,000.00 34,000.00

uilding No.130
Credit Balance
50,000.00

reciation - building No.132

Credit Balance
19,000.00 19,000.00
5,250.00 24,250.00

goodwill No.150
Credit Balance
 26,300.00

es payable No.201
Credit Balance
45,000.00 45,000.00

ts payable No.210
Credit Balance
35,000.00 35,000.00

ce revenue No.215
Credit Balance
10,000.00 10,000.00

ge payable No.218
Credit Balance
50,000.00 50,000.00

st payable No.220
Credit Balance
1,250.00 1,250.00

es payable No.225
Credit Balance
25,000.00 25,000.00
owner's capital No.300
Credit Balance
30,000.00 30,000.00
42,325.01
36,925.01

owner's drawings No.310

Credit Balance
5,400.00
5,400.00

ervice revenue No.400

Credit Balance
40,000.00 40,000.00
2,500.00 42,500.00
15,000.00 57,500.00

ries and wages expenses No.600

Credit Balance
7,000.00
32,000.00
32,000.00

utilities expense No.610

Credit Balance
12,000.00
12,000.00

advertising expense No.615

Credit Balance
5,600.00
5,600.00
nce expense No.620
Credit Balance
4,625.01
4,625.01

expense No.625
Credit Balance
3,100.00
3,100.00

on expense No.630
Credit Balance
11,250.00
11,250.00

expense No.632
Credit Balance
1,250.00
1,250.00

Income Summary No.638

Credit Balance
57,500.00 57,500.00
12,325.01 69,825.01

20
Magaly Hernandez:
February 28, 2022

34

20

14
 20

Magaly Hernandez:
For the quarter ended,
February 28, 2022 7

20
43
20
25
397