Question

> Continuing Problem This problem continues the Canyon Canoe Company situation from Chapter 2 will need to use the unadjusted trial balance and posted T-accounts that in Chapter2. P3-46 Preparing adjusting entries and preparing an adjusted trial balan you preparej At December 31, the business gathers the following information for adjusting entries: a. Office supplies on hand, $165 b. Rent of one month has been used. Hint: See Dec. 1 transaction from Chapter 2) c. Determine the depreciation on the building using straight-line depreciation the Assume the useful life of the building is five years and the residual value is $5,000 (Hint: The building was purchased on December 1.) d. $400 of unearned revenue has now been earned. e. The employee who has been working the rental booth has earned $1,250 in wages f. Canyon Canoes has earned $1,850 of canoe rental revenue that has not been g. Determine the depreciation on the canoes purchased on Novamber 3 using h. Determine the depreciation on the canoes purchased on December 2 i. Interest expense accrued on the notes payable, $50. that will be paid January 15, 2019. recorded or received ne depreciation. Assume the useful life of the canoes is - years and the residual value is $0. straight-line depreciation. Assume the useful life of the canoes is 4 years an residual value is $0.

Answer 1

Canyan Canoe Company T Accounts Date Debit Date CreditDate Debit Date Credit Date DebitDate CreditDate Debit Date Unearned Revenue Credit Office Supplies $750 a S 500 Prepaid Rent $1,200 b $ 3,000 Accumulated Depreciation s 1,085 s 1,000 400 $500d $ 200 $ 150 $750 Bal S 165 Bal S3,200 Bal $ 850 Bal S 350 Accounts Receivable Salaries Payable Interest Payable $ 3,000 3,500 1,850 $ 750 S 1,250 $ 50 Bal $7,600 Bal 1,250 Bal 50 Bal Salaries expense $ 1,500 $ 1,800 Service Revenue Rent expense 1,000 Depreciation expense $ 1,400 3,000 S 500 $ 200 $150 4,500e 1,250 $ 3,500 400 S 1,850 Bal $14,650 Bal 1,000 4,550 Interest expense $ 50 Bal Bal 850 Office Supplies expense 1,085 Bal 1,085 Bal $ 50 Bal Bal

Adjusted TB Debit Credit DebitCredit Unadjusted TB Canyan Canoe Company Account Cash Accounts Receivable Office Supplies Prepaid Rent Land Building Furniture/Canoes Accumulated Depreciation Accounts Payable Utilities Payable Telephone Payable Salaries Payable Interest Payable Unearned Revenue Notes Payable Common Stock Dividends Service Revenue Rent expense Salaries expense Telephone Expenses Utilities expense Of 12,125 5,750 1,250 4,200 85,000 35,000 12,000 12,125 7,600 165 3,200 85,000 35,000 12,000 850 3,050 295 325 1,250 50 350 7,200 136,000 3,050 295 325 750 7,200 136,000 450 12,400 14,650 3,300 500 445 1,000 4,550 500 fice Supplies expense Depreciation expense Interest expense Total 1,085 850 50 160,020 160,020 164,020 164,020