Answered step by step
Verified Expert Solution
Question
1 Approved Answer
an outside accountant prepared the following unadjusted trial balance as at the end of the company's fiscal year, December 31, 2017: Credit Debit $ 22,500
an outside accountant prepared the following unadjusted trial balance as at the end of the company's fiscal year, December 31, 2017: Credit Debit $ 22,500 8,675 1,700 1,325 34,200 $ 15,200 Account Titles Cash Accounts receivable Service supplies inventory Prepaid insurance Service trucks Accumulated depreciation, service trucks Other assets Accounts payable Note payable (three years, 8% each December 31) Contributed capital (4,800 shares outstanding) Retained earnings Service revenue Other expenses, excluding income tax 5,900 3,700 8,200 16,600 10,700 52,000 32,100 Totals $ 106,400 $ 106,400 Data not yet recorded at December 31, 2017, were as follows: a. Supplies inventory on December 31, 2017, reflecting $680 remaining on hand. b. Insurance expired during 2017, $530. c. Depreciation expense for 2017, $3,800. d. Wages earned by employees not yet paid on December 31, 2017, $1,500. e. Income tax expense, $3,350. Required: 1. Prepare the adjusting entries at December 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet General Journal Credit No 1 Transaction a. a. Debit 680 Supplies expense Supplies inventory 680 2 530 Insurance expense Prepaid insurance 530 C. 3,800 Depreciation expense Accumulated depreciation, trucks 3,800 Wage expense 1,500 3-b. Prepare a statement of financial position at December 31, 2017 SUTTON, INC. Statement of Financial Position As at December 31, 2017 Assets Service supplies inventory Income tax payable Total assets Liabilities Total liabilities Shareholders' Equity Total shareholders' equity Total liabilities and shareholders' equity 4. Compute the net earnings for the year, assuming that you did not make an adjustment to the balance of the supplies inventory account. (Do not round intermediate calculations. Round the final answer to 4. Compute the net earnings for the year, assuming that you did not make an adjustment to the balance of the supplies inventory account. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Net earnings $ 10,040 5. Prepare the closing entries at December 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet
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