Journals - Beginning Accounting Check

PROBLEM #4

(15 Points)

The following trial balance existed at 12/31/2250 for Picard and
Company, a consulting company.

Trial Balance Adjustments Adjusted Trial Balance

Account Dr Cr Dr Cr Dr Cr

Cash 90,000

A/R 30,000

Inventory 25,000

Prepaid Rent 24,000

Equipment 90,000

Accumulated Depr 45,000

Accounts Payable 23,000

Mortgage Payable 125,000

Unearned Revenue 2,000

Picard, Capital 73,000

Revenue 160,000

Electric Expense 50,000

Wage Expense 100,000

Interest Expense 19,000

Total 428,000 428,000

At the end of the year, the following transactions had not yet been
recorded:

1. Depreciation expense for the year amounted to $9,000

2. Expense related to that portion of the expired rent – $24,000 rent
was prepaid 10/1/2250 for a 12 month period

3. Consulting services provided but not yet billed amounted to $25,000

4. On 11/1/2250, a customer made an advance payment of $2,000 for
consulting services. As of 12/31/2250, all

required work had been completed.

Required:

1. Prepare the journal entries for the above adjustments, record them
in the appropriate columns and calculate the new balances in the
adjusted trial balance

Date Account Description Dr Cr

12/31/2250



12/31/2250

12/31/2250

12/31/2250

2. What is the net income for the period?