Question
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:
- Interest of $150 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 $1,600 at the end of its four-year life.
- A count of the Repair Supplies revealed a balance on hand of $660.
- A review of the Prepaid Rent account showed that $12,000 had been used during September.
- Accrued wages of $2,600 had not been recorded at month-end.
- The September Internet bill for $120 had been received and must be paid by October 14.
- 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.
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