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Task 3: After you’ve completed the trial balance, Sophia tells you that a number of internal business transactions occurred during the year but were not recorded. You must use this information to prepare adjusting entries and an adjusted trial balance, which are steps 5 and 6 in the accounting cycle. A. On December 1 received cash of $360 for three months of Cleaning Services beginning December 1. B. HHEC received employee services for the last two days of December amounting to $250, to be paid in Year 2. C. As of December 31, Year 1, HHEC provided 25 hours of cleaning services at $20 per hour to be billed in January Year 2. D. On December 31, Year 1, HHEC recorded depreciation on its Office Equipment of $50 E. On December 31, Year 1, HHEC record depreciation on Building of $1,980 F. On December 31, Year 1, $100 of insurance had been used. G On December 31, Year 1, $400 of supplies had been used HHEC Trial Balance December 31, Year 1 Cash 6,855 Accounts Receivable 2,200 Supplies 2,800 Prepaid Insurance 2,400 Building 10,000 Office Equipment 1,800 Accounts Payable 1,850 Sisters, Capital 15,000 Sisters, Withdrawals 4,000 Clearning Revenues 18,660 Wages Expense 4,275 Utilities Expense 985 Miscellaneous Expense 195 Total 35,510 35,510
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