Below is what our general journal and ledger accounts (T-Accounts) look like after all of the adjusting entries for MM TAX have been recorded and posted.
The general journal is a place where each transaction is recorded in chronological order.
| Date | Accounts and explanation | Debit | Credit |
|---|---|---|---|
|
-
|
Adjusting entries
|
-
|
-
|
| Dec. 31 | Insurance expense | $100 |
-
|
|
-
|
Prepaid insurance
|
-
| $100 |
|
-
| Adjusting entry for insurance expired |
-
|
-
|
| Dec. 31 | Office supplies expense | $30 |
-
|
|
-
|
Office supplies
|
-
|
$30 |
|
-
| Adjusting entry for office supplies used |
-
|
-
|
| Dec. 31 | Depreciation expense | $21 |
-
|
|
-
|
Accumulated depreciation, computer
|
-
| $21 |
|
-
| Adjusting entry for depreciation of computer |
-
|
-
|
| Dec. 31 | Unearned revenue | $1,200 |
-
|
|
-
|
Fees earned
|
-
| $1,200 |
|
-
| Adjusting entry for unearned revenue |
-
|
-
|
| Dec. 31 | Salaries expense | $200 |
-
|
|
-
|
Salaries payable
|
-
| $200 |
|
-
| To record accrued salaries expense |
-
|
-
|
| Dec. 31 | Accounts receivable | $500 |
-
|
|
-
|
Fees earned
|
-
| $500 |
|
-
| To record accrued salaries expense |
-
|
-
|
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
| Dec. 2 | $20,000 |
-
|
-
|
|
-
|
-
| $1,200 | Dec. 2 |
|
-
|
-
| $500 | Dec. 3 |
|
-
|
-
| $200 | Dec. 20 |
|
-
|
-
| $200 | Dec. 20 |
| Dec. 20 | $2,000 |
-
|
-
|
| Balance | $19,900 |
-
|
-
|
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
| Dec. 20 | $2,500 |
-
|
-
|
| Dec. 31 (AJE) | $500 |
-
|
-
|
| Balance | $3,000 |
-
|
-
|
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
| Dec. 4 | $50 |
-
|
-
|
|
-
|
-
| $30 | Dec. 31 (AJE) |
|
Balance |
$20 |
-
|
-
|
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
| Dec. 2 | $1,200 |
-
|
-
|
|
-
|
-
| $100 | Dec. 31 (AJE) |
|
-
|
-
| $1,100 | Balance |
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
| Dec. 3 | $500 |
-
|
-
|
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
|
-
|
-
| $21 | Dec. 31 (AJE) |
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
|
-
|
-
| $50 | Dec. 4 |
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
|
-
|
-
| $2,000 | Dec. 20 |
| Dec. 31 (AJE) | $1,200 |
-
|
-
|
|
-
|
-
|
$800 |
Balance |
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
|
-
|
-
| $200 | Dec. 31 (AJE) |
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
|
-
|
-
| $20,000 | Dec. 2 |
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
| Dec. 20 | $200 |
-
|
-
|
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
|
-
|
-
| $2,500 | Dec. 20 |
|
-
|
-
| $1,200 | Dec. 31 (AJE) |
|
-
|
-
| $500 | Dec. 31 (AJE) |
|
-
|
-
| $4,200 | Balance |
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
| Dec. 20 | $200 |
-
|
-
|
| Dec. 31 (AJE) | $200 |
-
|
-
|
| Balance | $400 |
-
|
-
|
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
| Dec. 31 (AJE) | $100 |
-
|
-
|
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
| Dec. 31 (AJE) | $30 |
-
|
-
|
|
debit transaction number
| D | C |
credit transaction number
|
|---|---|---|---|
| Dec. 31 (AJE) | $21 |
-
|
-
|
The ending balances in the ledger accounts (T-Accounts) after adjusting entries have been recorded will be used to prepare the adjusted trial balance.