Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Arrow Hospitality prepares adjustments monthly and showed the following at September 3 0 , 2 0 2 3 : ARROW HOSPITALITY Trial Balances September 3

Arrow Hospitality prepares adjustments monthly and showed the following at September 30,2023:
ARROW HOSPITALITY
Trial Balances
September 30,2023
Unadjusted Adjusted
Trial Balance Adjustments Trial Balance
Account Dr. Cr. Dr. Cr. Dr. Cr.
Cash $ 5,800
Accounts receivable 11,000
Repair supplies 2,100
Prepaid rent 13,800
Office furniture 24,840
Accounts payable $ 7,800
Notes payable 20,800
Eli Arrow, capital 67,498
Eli Arrow, withdrawals 4,800
Hospitality revenues 126,000
Salaries expense 143,000
Wages expense 16,758
Totals $ 222,098 $ 222,098
Additional information available for the month ended September 30,2023:
Interest of $156 had accrued on the notes payable for the month of September.
The office furniture was acquired on September 1,2023, and has an estimated four-year life. The furniture will be sold for about $1,800 at the end of its four-year life.
A count of the Repair Supplies revealed a balance on hand of $680.
A review of the Prepaid Rent account showed that $10,000 had been used during September.
Accrued wages of $2,700 had not been recorded at month-end.
The September Internet bill for $100 had been received and must be paid by October 14.
Accrued revenues of $6,000 were not recorded at September 30.
Required:
1. Complete the adjusted trial balance by including the adjusting entries.
2-a. Prepare an income statement based on the adjusted trial balance completed in Part 1.
2-b. Prepare a statement of changes in equity based on the adjusted trial balance completed in Part 1. Assume that the owner, Eli Arrow, made an investment during September of $3,400.
2-c. Prepare a balance sheet based on the adjusted trial balance completed in Part 1. Assume that the owner, Eli Arrow, made an investment during September of $3,400.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Part 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

6th Canadian edition Volume 1

1118306791, 978-1118306796

More Books

Students also viewed these Accounting questions