1. Anderson Laboratory adjusts its accounts at the end of each month. The trial balance at September 30, 2020, before adjustments, is as follows:

Anderson Laboratory

Unadjusted Trial Balance

September 30, 2020

	Debit	Credit
Cash	$12,000
Medical Fees Receivable	25,000
Prepaid Rent	5,000
Office Supplies	1,200
Medical Equipment	30,000
Accumulated Depreciation: Medical Equipment		$ 6,000
Account Payable		3,000
Notes Payable		8,000
Unearned Medical Fees		14,000
Capital Stock		18,000
Retained Earnings		16,000
Dividends	1,000
Medical Fees Earned		31,000
Salaries Expense	14,000
Utilities Expense	2,000
Insurance Expense	5,800
Totals	$96,000	$ 96,000

The following information relates to month end adjustments:

(a) Office supplies on hand September 30 amounted to $500.

(b) The useful life of the medical equipment was estimated to be 20 years.

(c) Many patients pay in advance for major medical procedures. Fees of $6,000 were earned during the month by performing procedures on patients who had paid in advance.

(d) Salaries earned by employees during the month but not yet recorded amounted to $2,300.

(e) On September 1, Anderson Laboratory had moved and paid 2 month's rent in advance.

(f) Medical procedures performed during the month but not yet billed or recorded amounted to $4,600.

Prepare the adjusting entries required at September 30, including a date and explanation for each entry.

Anderson Laboratory

General Journal

2020		Debit	Credit

2. The accounts and their amounts for Trevia Company at December 31, 2019 are listed below. Prepare closing entries (16 points, 4 points each) and an After-Closing Trial Balance (8 points).

Trevia Company

Adjusted Trial Balance

December 31, 2019

	Debit	Credit
Cash	$6,800
Accounts Receivable	6,920
Supplies	380
Prepaid Insurance	800
Machinery	2,800
Accumulated Depreciation: Machinery		$1,200
Salaries Payable		520
Capital Stock		8,200
Retained Earnings		2,460
Dividends	300
Revenue		12,780
Insurance Expense	180
Salary Expense	6,300
Miscellaneous Expense	260
Depreciation Expense	420	______
Totals	$25,160	$25,160

Trevia Company

General Journal

2019		Debit	Credit

Trevia Company After Closing Trial Balance July 31, 2019
	Debit	Credit

3. Using the Adjusted Trial Balance shown below, prepare (a) a Multi-Step Income Statement (14 points) and (b) a Statement of Retained Earnings (10 points) for Coolidge Repairs.

Coolidge Repairs Adjusted Trial Balance July 31, 2019
	Debit	Credit
Cash	$19,100
Accounts Receivable	71,700
Supplies	1,400
Equipment	22,300
Accumulated Depreciation: Equipment		$8,400
Accounts payable		17,000
Notes payable		4,500
Income taxes payable		23,800
Capital stock		25,300
Retained earnings		6,200
Dividends	12,400
Fees earned		112,000
Rent expense	8,000
Wages expense	33,200
Supplies expense	3,500
Utilities expense	1,900
Depreciation expense: equipment	920
Income Tax Expense	22,780	_______
Totals	$197,200	$197,200

Coolidge Repairs Income Statement For the Month ended July 31, 2019

Coolidge Repairs Statement of Retained Earnings For the Month ended July 31, 2019

4. Prepare journal entries, including dates and explanations, for the following, assuming the company uses a perpetual inventory method and records purchases at their net amounts

June 1	Purchased merchandise from Crane Company for $900 with the terms of 3/10, n/40.
June 3	Returned $200 of the merchandise to the Crane Company.
June 5	Purchased merchandise from the Tory Company for $600 with the terms of 2/10, n/30.
June 6	Paid the amount owed to the Crane Company.
June 8	Returned $100 of the merchandise to the Tory Company.
June 12	Sold all of the merchandise on hand from the Crane Company for $1,600 and collected 6% sales tax in addition to the sales price.
June 18	Paid the amount owed to the Tory Company in full.

General Journal

2020		Debit	Credit