Question

Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question. Round answers to 0 decimal places, e.g. 5,275.)

Answer 1

Insurance Expense (Dr.) $200

Prepaid Insurance (Cr.) $200

Supplies expense (Dr.) $1,250

Cash (Cr.) $1,250

Depreciation Expense (Dr.) $424

Accumulated depreciation Building (Cr.) $304

Accumulated Depreciation Equipment (Cr.) $120

Interest Expense (Dr.) $200

Interest Payable (Cr.) $200

Unearned Rent Revenue (Dr.) $2,200

Rent Revenue (Cr.) $2,200

Salaries Expense (Dr.) $700

Salaries Payable (Cr.) $700

Explanation:

Three column ledger has particular, debit and credit columns in which all the entries which are recorded in journal entries are posted to have a clear view of the expense and income.