Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4 Garvey Company's unadjusted trial balance includes the following account balances as of December 31, 2022: Cash Accounts Receivable Interest Receivable Supplies Prepaid Insurance
4 Garvey Company's unadjusted trial balance includes the following account balances as of December 31, 2022: Cash Accounts Receivable Interest Receivable Supplies Prepaid Insurance Notes Receivable (short-term) Debits $ 69,030 Credits: 116,900 1,320 139,300 8,750 50,300 279,200 $ 64,800 104,600 Salaries and Wages Payable Deferred Revenue 21,700 9,300 Notes Payable (long-term) Common Stock 87,800 217,200 Retained Earnings 144,200 Equipment Accumulated Depreciation Accounts Payable Service Revenue 40,700 Interest Revenue 22,000 Supplies Expense Repairs and Maintenance Expense 26,550 Rent Expense 17,900 Depreciation Expense. Insurance Expense Salaries and Wages Expense 3,050 Totals $ 712,300 $712,300 The following data are available to determine adjusting entries: A) Insurance purchased at the beginning of July for $8,750 provided coverage for twelve months (July 2022 through June 2023). The insurance coverage for July through December totaling $4,375 has now been used. B) The company estimates $8,200 in depreciation each year. C) A count showed $86,200 of supplies on hand at the end of the year. D) An additional $270 of interest has been earned but has not yet been uncollected on the outstanding notes receivable. E) Services in the amount of $5,650 were performed for customers who had previously paid in advance. F) Services in the amount of $2,100 were performed; these services have not yet been billed or recorded. Required: a. Prepare the adjusting entries that are required at the end of the period. b. Prepare an adjusted trial balance by completing the related columns in the table below. Complete this question by entering your answers in the tabs below.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started