ACC120 Study Guide - Final Guide: Accounts Payable, Deferral, Current Liability
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Given the adjusted trial balance below, prepare (in good form) an income statement, statement of owner's equity, and balance sheet. The name of the business is Duncore Secretarial Service and the accounting period coincides with the calendar year.
Duncore Secretarial Service | ||
Adjusted Trial Balance | ||
December 31, 2010 | ||
Cash | $ 265 | |
Accounts Receivable | 600 | |
Supplies | 10 | |
Prepaid Insurance | 10 | |
Office Equipment | 1,000 | |
Accumulated DepreciationâOffice Equipment | $ 150 | |
Accounts Payable | 600 | |
Salaries Payable | 35 | |
Marina Duncore, Capital | 700 | |
Service Revenue | 1,100 | |
Salaries Expense | 560 | |
Supplies Expense | 40 | |
Insurance Expense | 50 | |
Depreciation ExpenseâOffice Equipment | 50 | ______ |
$2,585 | $2,585 |
Rolling Hills Golf Inc. was organized on July 1, 2012. Quarterlyfinancial statements are prepared. The trial balance and adjustedtrial balance on September 30 are shown here.
ROLLING HILLS GOLF INC. | ||||
Unadjusted | Adjusted | |||
Dr. | Cr. | Dr. | Cr. | |
Cash | $ 6,700 | $ 6,700 | ||
Accounts Receivable | 400 | 1,000 | ||
Prepaid Rent | 1,800 | 900 | ||
Supplies | 1,200 | 180 | ||
Equipment | 15,000 | 15,000 | ||
Accumulated DepreciationâEquipment | $ 350 | |||
Notes Payable | $ 5,000 | 5,000 | ||
Accounts Payable | 1,070 | 1,070 | ||
Salaries and Wages Payable | 600 | |||
Interest Payable | 50 | |||
Unearned Rent Revenue | 1,000 | 800 | ||
Common Stock | 14,000 | 14,000 | ||
Retained Earnings | 0 | 0 | ||
Dividends | 600 | 600 | ||
Service Revenue | 14,100 | 14,700 | ||
Rent Revenue | 700 | 900 | ||
Salaries and Wages Expense | 8,800 | 9,400 | ||
Rent Expense | 900 | 1,800 | ||
Depreciation Expense | 350 | |||
Supplies Expense | 1,020 | |||
Utilities Expense | 470 | 470 | ||
Interest Expense | 50 | |||
$35,870 | $35,870 | $37,470 | $37,470 |
Instructions
(a) Journalize the adjusting entries that were made.
(b) Prepare an income statement and a retained earningsstatement for the 3 months ending September 30 and a classifiedbalance sheet at September 30.
(c) Identify which accounts should be closed on September30.
(d) If the note bears interest at 12%, how many months has itbeen outstanding?
Prepare adjusting journal entries and an adjusted trialbalance.
Ad MenAdvertising, Inc. Trial Balance November 30, 2012 | ||
Account | Debit | Credit |
Cash | $ 30,100 | |
Accounts Receivable | 22,800 | |
Prepaid Insurance | 2,700 | |
Supplies | 1,200 | |
Equipment | 59,000 | |
Accumulated Depreciation, Equipment | $ 50,000 | |
Accounts Payable | 3,100 | |
Salaries Payable | ||
Unearned Service Revenue | 2,900 | |
Common Stock | 25,000 | |
Retained Earnings | 25,300 | |
Dividends | 1,000 | |
Service Revenue | 13,900 | |
Salaries Expense | 3,400 | |
Insurance Expense | ||
Depreciation Expense, Equipment | ||
Utilities Expense | ||
Supplies Expense | ||
Total | $120,200 | $120,200 |
Insurance coverage still remaining at November 30, $700.
Supplies used during the month, $400.
Depreciation for the month, $3,400.
Accrued utilities expense at November 30, $700. (use AccountsPayable as the liability account needed)
Accrued salaries at November 30, $1,000.
Service revenue still unearned at November 30, $1,300.
Part A
Open T-accounts for the accounts listed in the trial balance andinsert their November 30 unadjusted balances. Journalize theadjusting entries and post them to the T-accounts. Reference theposted amounts by letter, (a) through (f). Calculate the adjustedbalance in each account.
Part B
Prepare the adjusted trial balance at November 30, 2012.
Part C
How will the company use the adjusted trial balance?