Ninja Sockeye Star prepared the following unadjusted trial balance at the end of its second year of

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Ninja Sockeye Star prepared the following unadjusted trial balance at the end of its second year of operations, ending December 31, 2017. 

Account Titles Debit Credit Cash $12,000 Accounts Receivable 6,000 Prepaid Rent 2,400 Machinery 21,000 Accumulated Depreciation $ ,000 Accounts Payable 1,000 Utilities Payable Income Tax Payable Contributed Capital 29,800 Retained Earnings 2,100 Sales Revenue 45,000 Wages Expense Utilities Expense 25,000 12,500 Rent Expense Depreciation Expense Income Tax Expense Totals $78,900


Other data not yet recorded at December 31, 2017 includes the following: 

a. Rent expired during 2017, $1,200 

b. Depreciation expense for 2017, $1,000 

c. Utilities payable, $9,000 

d. Income tax expense, $800 


Required: 

1. Using the format shown in the demonstration case, indicate the accounting equation effects of each required adjustment. 

2. Prepare the adjusting journal entries required at December 31, 2017. 

3. Summarize the adjusting journal entries in T-accounts. After entering the beginning balances and computing the adjusted ending balances, prepare an adjusted trial balance as of December 31, 2017.

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Related Book For  book-img-for-question

Fundamentals Of Financial Accounting

ISBN: 9780073527109

3rd Edition

Authors: Fred Phillips, Robert Libby, Patricia A Libby

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