Bel-Aire Trailer Park's unadjusted trial balance, at the end of its annual accounting period, follows: section*{Required} 1.
Question:
Bel-Aire Trailer Park's unadjusted trial balance, at the end of its annual accounting period, follows:
\section*{Required}
1. Set up accounts for the items in the trial balance plus these additional accounts: Accounts Receivable; Wages Payable; Property Taxes Payable; Interest Payable; Insurance Expense; Office Supplies Expense; Depreciation Expense, Office Equipment; and Depreciation Expense, Buildings and Improvements. Enter the trial balance amounts in the accounts.
2. Use the information that follows to prepare and post adjusting journal entries:
a. An insurance policy examination shows \(\$ 1,850\) of expired insurance.
b. An inventory shows \(\$ 125\) of unused office supplies on hand.
c. Estimated depreciation of office equipment, \(\$ 465\); and
(d) of buildings and improvements, \(\$ 7,875\).
e. An examination reveals that \(\$ 665\) of the Unearned Rent balance was earned by the year-end.
f. One tenant is in arrears on rent payments, and this \(\$ 150\) of accrued revenue was unrecorded at the time the trial balance was prepared.
g. Four month's property taxes expense, estimated at \(\$ 1,500\), has accrued but was not recorded at the time the trial balance was prepared.
h. The one employee of the trailer park works a five-day week at \(\$ 60\) per day. He was paid last week but has worked four days this week for which he has not been paid.
i. Three months' interest on the note payable, \(\$ 4,866\), has accrued but is unpaid on the trial balance date.
3. Post the adjusting entries and prepare an adjusted trial balance, an income statement for the year, a statement of changes in owner's equity, and a classified balance sheet. Ms. Henry's capital account balance has not been increased by investments during 1990. An \(\$ 8,250\) payment on the long-term note payable is due within one year.
Step by Step Answer:
