Bull Ranch Company

Trial Balance

December 31, 2016

Cash	$200,000
Accounts receivable	300,000
Supplies	7,000
Building	400,000
Accumulated depreciationbuilding		$220,000
Furniture and fixtures	160,000
Accumulated depreciationfurniture and fixtures		35,000
Accounts payable		310,000
Salary payable
Unearned service revenue		31,000
Income tax payable
Common stock		100,000
Retained earnings		353,000
Dividends	65,000
Service revenue		282,000
Salary expense	180,000
Supplies expense
Depreciation expensebuilding
Depreciation expensefurniture and fixtures
Income tax expense
Miscellaneous expense	19,000
Total	$1,331,000	$1,331,000

a.

Supplies on hand at year-end,

$ 1 comma 000$1,000.

b.

Depreciation on furniture and fixtures,

$ 20 comma 000$20,000.

c.

Depreciation on building,

$ 18 comma 000$18,000.

d.

Salaries owed but not yet paid,

$ 14 comma 000$14,000.

e.

Accrued service revenue,

$ 24 comma 000$24,000.

f.

Of the

$ 31 comma 000$31,000

balance of unearned service revenue,

$ 28 comma 000$28,000

was earned during the year.

g.

Accrued income tax expense,

$ 31 comma 000$31,000.

Requirement 1. Journalize the

Bull RanchBull Ranch

Company adjusting entries at December 31,

20162016.

Key entries by letter. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

a. Supplies on hand at year end,

$ 1 comma 000$1,000.

b. Depreciation on furniture and fixtures,

$ 20 comma 000$20,000.

c. Depreciation on building,

$ 18 comma 000$18,000.

d. Salaries owed but not yet paid,

$ 14 comma 000$14,000.

e. Accrued service revenue,

$ 24 comma 000$24,000.

f. Of the

$ 31 comma 000$31,000

balance of unearned service revenue,

$ 28 comma 000$28,000

was earned during the year.

g. Accrued income tax expense,

$ 31 comma 000$31,000.

Requirement 2. The ledger accounts with their unadjusted balances have been opened for you. Post the adjusting entries to the accounts. Then calculate each account balance and enter the balance on the correct side of the account along with the "Bal" label.

Requirement 3. Prepare a worksheet for the adjusted trial balance.

Review the T-accounts from requirement 2.

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Bull Ranch Company

Trial Balance Worksheet

December 31, 2016

Requirement 4. Prepare the income statement, the statement of retained earnings, and the balance sheet. (It is not necessary to classify assets or liabilities as current or long term.)

Finally, prepare the balance sheet. (Abbreviations used: Accum. depr. = accumulated depreciation, Depr. exp. = depreciation expense.)

Review the adjusted trial balance from requirement 3.