Question

85 PTS: QUESTION 7 (WITH SEX PARTS) COMPREHENSIVE PROBLEM Below is an unadjusted trial balance for the year 2020 for Monster Comprehensive Company (MCC MCC provides services to their customers Good news! All of the initial transactions have already been posted Use the Unadjusted Trial Balance below to complete the TB worksheet and financials statements Unadjusted ACCOUNT Unadjusted Debit Credit CASH 18 A/R 20 7 SUPPLIES PREPAID RENT 6 65 EQUIPMENT ACCUMULATED DEPRECIATION 13 18 A/P UNEARNED REVENUE INTEREST PAYABLE LOAN PAYABLE 50 COMMON STOCK 10 15 RETAINED EARNINGS DIVIDENDS 10 SERVICE REVENUE 75 DEPRECIATION EXPENSE INTEREST EXPENSE

Answer 1

40 41 Debit Credit Adjusting Journal Entries Account Title & Explanation Supplies expense (7-3) Supplies (To record supplies consumed during the Year) 42 a) 43 4 4 44 45 46 b) 47 5 Rent expense (6/6*5) Prepaid Rent (To record expired rent) 5 48 10 49 50 C) 51 52 53 54 d) 55 Unearned Revenue Service Revenue (To record revenue earned) 10 5 Accounts receivable Service Revenue (To record Service Revenue earned during the year) 5 56 57 58 e) 59 8 Depreciation Expense (65-5)/5*8/12 Accumulated Depreciation - Equipment (To record depreciation expense) 8 60

2 62 f) 63 Interest Expense (50*6%*8/12) Interest Payable (To record accrued interest expense) 2 64 65 66 67 Master Comprehensive Company (MCC) Worksheet For the year ended Dec.31,2020 Trial Balance Adjustments Dr. Cr. Dr. Cr. 18 68 69 Adjusted Trial Balance Dr. Cr. 18 70 71 20 5 25 72 7 4 3 73 6 5 1 74 65 65 8 8 75 76 13 13 77 Cash Accounts Receivable Supplies Prepaid rent Equipment Accumulated Depreciation - Equipment Accounts Payable Unearned Revenue Interest Payable Loan Payable Common Stock Retained Earnings Dividends Service Revenue Depreciation expense 18 10 8 78 2 2 79 50 50 80 10 10 81 15 15 82 10 10 83 75 15 90 84 8 8

85 2 2 7 5 12 86 87 Interest expense Rent expense Supplies expense Wages expense Total 4 4 88 48 48 89 181 181 34 34 196 196 90 91 92 93 94 Master Comprehensive Company (MCC) Income Statement For the Year Ending December 31,2020 90 95 96 8 97 2 Service Revenue Less Expenses Depreciation expense Interest expense Rent expense Supplies expense Wages expense Total Expenses Net Income 98 99 12 4 48 100 101 74 102 16 103

104 105 106 107 108 109 Master Comprehensive Company (MCC) Retained Earning Statement For the Year Ending December 31,2020 Beginning Balance of Retained Earnings Add Net Income 16 Less Dividend Ending Balance of Retained Earnings 15 - 10 6 110 21 111 112 113 114 115 116 117 118 119 Master Comprehensive Company (MCC) Balance Sheet As on December 31, 2020 Assets Cash 18 Accounts Receivable Supplies Prepaid rent 1 Total Current Assets Equipment 65 Accumulated Depreciation - Equipment -8 Total Assets 120 47 121 122 123 57 104

124 125 13 126 NO 127 128 23 129 Liabilities and Shareholder's Equity Accounts Payable Unearned Revenue Interest Payable Total Current Liabilities Loan Payable Total Liabilities Shareholder's Equity Common Stock Retained Earnings Total Liabilities and Shareholder's Equity 50 130 73 131 132 10 133 21 31 134 104 135

136 137 138 139 Credit 140 141 142 143 144 Master Comprehensive Company (MCC) Post Closing Trial Balance As on December 31,2020 Account Title Debit Cash 18 Accounts Receivable 25 Supplies 3 Prepaid rent 1 Equipment 65 Accumulated Depreciation - Equipment Accounts Payable Unearned Revenue Interest Payable Loan Payable Common Stock Retained Earnings Total 112 145 8 146 13 147 148 149 N00 50 10 150 151 21 152 112 153