Use of a Trial Balance as a Basis for Adjusting Entries
Bob Reynolds operates a real estate business. A trial balance on April 30, 2008, before any adjusting
entries are recorded, appears as follows:
1. Prepare in general journal form the necessary adjusting entries at April 30, 2008. Label the
entries (a) through (h) to correspond to the other data.
2. Note that the unadjusted trial balance reports a credit balance in Accumulated Depreciation—
Office Equipment of $5,000. Explain why the account contains a balance of $5,000 on April 30,