Additional Practice MILLER, INC. ADJUSTED TRIAL BALANCE 12-31-08 DEBIT CREDIT 55,000 28,000 5,000 2,000 85,000 Cash Accounts Receivable Supplies on Hand Prepaid Insurance Equipment Accumulated Depreciation Accounts Payables Wages Payable Unearned Revenues Long Term Notes Payable Common Stock Retained Earnings (1-1-08) Dividends Sales Cost of Goods Sold Rent Expense Insurance Expense Depreciation Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Interest Revenue 40,000 10,000 5,000 12,000 20,000 65,000 1,000 4,000 186,000 72,000 24,000 8,000 7,000 25,000 2,000 6,000 18,000 Total 341,000 2,000 341,000 Answer the following questions using the above trial balance: 1. How much is net income? 2. How much is ending retained earnings? 3. How much is ending stockholders' equity? 4. How much is total assets? 5. How much is total liabilities? 6. Verify that A = L + SE. 7. How much is current assets? 8. How much is current liabilities? 9. How much is net PPE? ] + 40 10 / 10 View as Text Download Prestige Co has the following reconciling information in preparing its May bank reconciliation: Cash balance per books, 5/31 16,050 Cash balance per bank statement, 5/31 26,700 Outstanding checks Deposits in transit NSF check Bank charges & fees EFT collected by bank 10,000 2,400 950 200 4,200 What is the adjusted balance per the bank on May 31? What is the adjusted balance per books on May 31? Balance per bank 26,700 Balance per books 16,050 Adj. Bal. Per Bank Adj. Bal. Per Books What journal entries must Prestige Co record? 10 + 9 110 2 View as Text Download Example: Jan. 2nd ordered jumping castle. Jan. 25th party with jumping castle. Jan. 27th got bill in mail. Feb. 2nd paid bill. When does jumping castle company recognize revenue? AJE's (Impacts on accounts & impacts if fail to record AJE's) Deferrals recorded: insurance, Prepaid Expense before supplies, advertising, rent, PP&E) Example 1:Initial entry: Dr. Supplies 15,000. Cr. Cash 15,000 -AJE for use of 5,000: -OR AJE if 8,000 of supplies remain: -If fail to make AJE: Example 2:Initial entry: Dr. Equipment 20,000, Cr. Cash 20,000 -AJE for 2,000 annual depreciation: Unearned Revenue ( before recorded: season tickets, airline tickets, gift cards, client deposits) Example: Initial entry: Dr. Cash 10,000. Cr. Unearned Revenue 10,000 -AJE for earning 2,000: -OR AJE if 6K of unearned rev. remains: -If fail to make AJE: I 0 6 110 View as Text Download Accruals cash paid: bills, interest Accrued Expense (Exp. Recorded exp., tax, salaries) Example: $700 of unrecorded salaries earned during last 3 days of period: -If fail to make AJE: cash received: rent, Accrued Revenue (Rev. recorded interest rev., services) Example: Unbilled services of $500: -If fail to make AJE: Closing the Books I 0 t 7 1 10 2 View as Text Download