Question

Problem 4-02A a-e (Part Level Submission) The adjusted trial balance columns of the worksheet for Ayayai Company are as follows. Cash 130 157 Ayayai Company Worksheet For the Year Ended December 31, 2019 Adjusted Trial Balance Account No. Account Titles Dr. Cr. 101 5,000 112 Accounts Receivable 10,500 126 Supplies 1,200 Prepaid Insurance 1,800 Equipment 26,500 158 Accumulated Depreciation-Equipment 5,000 200 Notes Payable 12,000 201 Accounts Payable 5,800 212 Salaries and Wages Payable 2,100 230 Interest Payable 500 311 Common Stock 9,500 320 Retained Earnings 3,000 Dividends 6,300 Service Revenue 61,100 610 Advertising Expense 8,000 631 Supplies Expense 3,700 Depreciation Expense 5,000 Insurance Expense 3,000 726 Salaries and Wages Expense 27,500 Interest Expense Totals 99,000 99,000 332 400 711 722 500

Answer 1

Account No. Account Titles 101 112 126 $ 130 Ayayai Company Worksheet For the Year Ended December 31, 2019 Adjusted Trial Balance Income Statement Dr. Cr. Dr. Cr. 5,000 10,500 1,200 1,800 26,500 5,000 12,000 5,800 $ 2,100 500 $ 9,500 $ 157 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation - Equipment Notes Payable Accounts Payable Salaries and Wages Payable Interest Payable Common Stock Retained Earnings Dividends Service Revenue Advertising Expense Supplies Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Interest Expense Totals 158 200 201 212 230 311 320 332 400 610 Balance Sheet Dr. Cr. 5,000 10,500 1,200 1,800 26,500 5,000 12,000 5,800 2,100 500 9,500 3,000 6,300 3,000 61,100 61,100 631 711 722 6,300 $ 8,000 3,700 5,000 3,000 27,500 500 99,000 $ $ $ 8,000 3,700 5,000 3,000 27,500 500 47,700 $ 13,400 61,100 $ 726 905 $ 99,000 $ 61,100 $ 51,300 $ Net Income 37,900 13,400 51,300 Totals 61,100 $ 51,300 $

• Supplies represent the stock of consumables in hand. Once they are consumed, they are written off as supplies expense. Journal entries:
  • 
    Date Debit Credit Particulars Supplies Cash To record purchase of supplies Supplies expense Supplies Supplies consumed recognized as expense
    
• Dividends are adjusted against retained earnings. Journal Entry -
  • 
    Date Credit Debit 6,300 $ Particulars Dividends Cash To record dividend payment $ 6,300 Retained Earnings $ 6,300 Dividends $ Dividends paid adjusted against retained earnings 6,300