Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $ 5,600
Accounts receivable 10,800
Repair supplies 2,000
Prepaid rent 13,600
Office furniture 23,680
Accounts payable $ 7,600
Notes payable 20,000
Eli Arrow, capital 67,238
Eli Arrow, withdrawals 4,600
Hospitality revenues 124,000
Salaries expense 142,000
Wages expense 16,558
Totals $ 218,838 $ 218,838

Additional information available for the month ended September 30, 2023:

  1. Interest of $150 had accrued on the notes payable for the month of September.
  2. The office furniture was acquired on September 1, 2023, and has an estimated four-year life. The furniture will be sold for about $1,600 at the end of its four-year life.
  3. A count of the Repair Supplies revealed a balance on hand of $660.
  4. A review of the Prepaid Rent account showed that $12,000 had been used during September.
  5. Accrued wages of $2,600 had not been recorded at month-end.
  6. The September Internet bill for $120 had been received and must be paid by October 14.
  7. Accrued revenues of $5,800 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 $3,200.

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 $3,600.

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

Auditing And Assurance Services An Integrated Approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley

17th Edition

013517614X, 978-0135176146

More Books

Students also viewed these Accounting questions

Question

Discuss various types of training methods.

Answered: 1 week ago

Question

Illustrate the value of different types of employment tests.

Answered: 1 week ago

Question

Outline key considerations when making a hiring decision.

Answered: 1 week ago