Question

Saved Credits Debita 32,600 41,000 2,000 61,000 21,000 0 1,400 7,000 84,000 Account Title Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable Deferred sales revenue Common stock Retained earnings Dividends Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense Totals 31,500 32,000 0 51,000 0 2,500 67,000 31,000 5,000 151,000 0 75,000 19,400 11,500 0 0 1,600 0 3,500 366,000 366,000 Prex 1 2. C 3 5 of 5 SH: 23

1. & 2. Post the unadjusted balances and adjusting entires into the appropriate t-accounts. (Enter the number of the adjusting entry in the column next to the amount. Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

3. Prepare an adjusted trial balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

4. Prepare an income statement and a statement of shareholders’ equity for the year ended December 31, 2021, and a classified balance sheet as of December 31, 2021. Assume that no common stock was issued during the year and that $5000 in cash dividends were paid to shareholders during the year.

5. Prepare closing entries. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

6. Prepare a post-closing trial balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

Answer 1

1 & 2)

1)	Adjusting entries
	Particular	Debit	Credit
1	Depreciation expenses	10500
	To accumulated depreciation		10500
2	Salaries Expenses	1000
	To salary Payable		1000
3	Interest Expense (51000*12%*3/12)	1530
	To interest payable		1530
4	Interest Receivable (21000*8%*10/12)	1400
	To Interest revenue		1400
5	Insurance Expense (7000*9/12)	5250
	To prepaid insurance		5250
6	Supplies Expense (2000-620)	1380
	To supplies		1380
7	No entry
8	Rent Expense	700
	To prepaid rent		700

Ledgers
Depreciation
Particular	Amount	Particular	Amount
To accumulated dep	10500	By balance	10500
Accumulated depreciation
Particular	Amount	Particular	Amount
To balance	42000	By Balance	31500
		By dep	10500
Salaries expenses
Particular	Amount	Particular	Amount
To balance	19400	By balance	20400
To salary Payable	1000
Salary payable
Particular	Amount	Particular	Amount
To balance	1000	By salary expense	1000
Interest expenses
Particular	Amount	Particular	Amount
To interest payable	1530	By balance	1530
Interest payable
Particular	Amount	Particular	Amount
To balance	1530	By interest expenses	1530
Interest Receviable
Particular	Amount	Particular	Amount
To Interest revenue	1400	By balance	1400

Interest Revenue
Particular	Amount	Particular	Amount
To balance	1400	By interest receivable	1400
Insurance expenses
Particular	Amount	Particular	Amount
To prepaid insurance	5250	By balance	5250
Prepaid Insurance
Particular	Amount	Particular	Amount
To balance	7000	By insurance expense	5250
		By balance	1750
Supplies expenses
Particular	Amount	Particular	Amount
To balance	1600	By balance	2980
To supplies	1380
Supplies
Particular	Amount	Particular	Amount
To balance	2000	By supplies expenses	1380
		By balance	620

Rent Expenses
Particular	Amount	Particular	Amount
To balance	11500	By balance	12200
To prepaid rent	700
Prepaid rent
Particular	Amount	Particular	Amount
To rent expenses	700	By balance	1400
By balance	700

3)

Adjusted Trial Balance
Particular	Debit	Credit
Cash	32600
Accounts receivable	41000
Supplies	620
Inventory	61000
Notes Receivable	21000
Interest Receivable	1400
Prepaid Rent	700
Prepaid insurance	1750
Office equipment	84000
Acuumulated depreciation		42000
Accounts payable		32000
Salaries payable		1000
Notes payable		51000
Interest payable		1530
Deferred sales revenue		2500
common stock		67000
Retained earnings		31000
Dividends	5000
sales revenue		151000
Interest revenue		1400
Cost of goods sold	75000
Salary expenses	20400
Rent expenses	12200
Depreciation expenses	10500
Interest expenses	1530
supplies expenses	2980
Insurance expenses	5250
Advertising expenses	3500
Total	380430	380430

4)

Income statement
Particular	Amount	Amount
Sales revenue	151000
Interest Revenue	1400
Total revenue		152400
less : expenses
Cost of goods sold	75000
Salary expenses	20400
Rent expenses	12200
Depreciation expenses	10500
Interest expenses	1530
supplies expenses	2980
Insurance expenses	5250
Advertising expenses	3500
Total expenses		131360
Net Income		21040
Statement of shareholders equity
Particular	Amount
Opening retained earning	31000
Add:Net income	21040
Less : dividens	5000
Closing retained earnings	47040

Balance sheet
Assets	Amount
Cash	32600
Accounts receivable	41000
Supplies	620
Inventory	61000
Notes Receivable	21000
Interest Receivable	1400
Prepaid Rent	700
Prepaid insurance	1750
Office equipment	84000
Total	244070
Liabilities
Acuumulated depreciation	42000
Accounts payable	32000
Salaries payable	1000
Notes payable	51000
Interest payable	1530
Deferred sales revenue	2500
Total	130030
Common stock	67000
Retained earning	47040
Total	244070