Question

complete the adjusting entries, adjusted trial balance, income statement and balance sheet using the information provided

Number Styles D6 A C G H 1 Unadusted Trial Balance Dr. Adjusting Entries Dr. Adusted Trial Balance Income Starement Balance Sheet Cr Dr Cr. Cr Dr Cr. Permanent Accounts 6Cash Accounts Receivable 8 Prepaid Insurance Land Buldings Accumulated Depreciation-Buildings 12 Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Rent Revenue Common Stock Retained Eamings 12,463 14.021 4.673 311.583 140,000 35,000 61.000 18.300 54,605 155,791 18 176.130 15 20 Transtare Accounts 21 22 Service Revenue 23 Interest Revenue 24 Rent Reverue 25 Salaries Epense 26 Depreciation Expense 27 Insuranoe Enpense 20 Utiey Expense 29 Maintenance Expense 140,212 $ 1090 11,684 42.063 4.873 2.336 30 TOTALS $ 592.812 S 592.812 31 32 Net Income I Loss of the period 33 34 TOTALS 35 36 39 40 Following additional information is available; 41 42 1. The bulidings have an estimated useful life of 25 years withno salvage value 43 2. The company uses the straight-line depreciation method 44 3. The equipment is depreciated at 10:% of original cost per year 45 4. Prepaid insurance expired during the year, $1800 46 5. Accrued salaries at year-end are $2200 47 6. The company was paid $2000 by a tenant for a rent contract that will begin only net year. However, the transaction was recorded by mistake as rent revenue for the current year. 48 49 50 51 52 53 Instruction Worksheet

Answer 1

Solution Requirement 1: Complete the adiusting entries, adiusted Trial Balance, income statement and balance sheet using the information provided Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Balance Sheet Income Statement Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Permanent Accounts $12,463 $14,021 $4,673 $311,583 $12,463 $12,463 Cash Accounts Receivable $14,021 $2,873 $311,583 $14,021 Prepaid Insurance Land $1,800 $2,873 $311,583 $140,000 Buildings $140,000 $140,000 Accumulated Depreciation-Buildings $35,000 $5,600 $40,600 $40,600 $61,000 Equipment Accumulated Depreciation-Equipment $61,000 $61,000 $18,300 $6,100 $24,400 $54,605 $2,200 $2,000 $155,791 $176,130 $24,400 $54,605 $2,200 $2,000 $155,791 $176,130 Accounts Payable $54,605 Salaries Payable $2,200 $2,000 Unearned Rent Revenue $155,791 $176,130 Common Stock Retained Earnings Transitory Accounts Service Revenue $140,212 $1,090 $11,684 $140,212 $1,090 $9,684 $140,212 $1,090 $9,684 Interest Revenue $2,000 $2,200 $11,700 $1,800 Rent Revenue Salaries Expense $44,263 $11,700 $42,063 $44,263 $11,700 $1,800 $4,673 $2,336 Depreciation Expense $1,800 Insurance Expense $4,673 $2,336 Utility Expense $4,673 $2,336 Maintenance Expense $606,712 $150,986 $541,940 TOTALS $592,812 $592,812 $17,700 $17,700 $606,712 $64,772 $455,726 Net Income/ Loss of the period $86,214 $86,214 ОТALS S$150,986 $150,986 $541,940 $541,940 TOT

Adiusting Journal Entries Depreciation Expense ($140,000 /25) $5,600 Dr. $5,600 Cr. Accumulated Depreciation-Buildings $6,100 Dr. Depreciation Expense ($61,000 x 10 %) Accumulated Depreciation-Equipment $6,100 Cr. $1,800 Dr. Insurance Expense $1,800 Cr. Prepaid Insurance $2,200 Dr. Salaries Expense $2,200 Cr. Salaries Payable $2,000 Dr. Rent Revenue $2,000 Cr. Unearned Rent Revenue