Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CALCULATOR The Cheyenne Corp. opened for business on May 1, 2019. Its trial balance before adjustment on May 31 is as follows. Cheyenne Corp. Trial

image text in transcribed
image text in transcribed
CALCULATOR The Cheyenne Corp. opened for business on May 1, 2019. Its trial balance before adjustment on May 31 is as follows. Cheyenne Corp. Trial Balance May 31, 2019 Account Number Credit 101 Cash 126 130 Debit $ 3,500 2,000 2,400 14,000 61,600 14,900 140 141 14 201 208 Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 275 311 $ 11,300 3,200 40,000 35,300 13,400 429 610 650 726 732 3,200 950 $103,200 $103,200 In addition to those accounts listed on the trial balance, the chart of accounts for Cheyenne Corp. also contains the following ace Buildings, No. 150 Accumulated Depreciation-Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. E Expense, and No. 722 Insurance Expense. Other data: 1. 2. 3. Prepaid insurance is a 1-year policy starting May 1, 2019. A count of supplies shows $700 of unused supplies on May 31. Annual depreciation is $3,084 on the buildings and $1,488 on equipment. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.) Two-thirds of the unearned rent revenue has been earned Salaries of $800 are accrued and unpaid at May 31. 5. 6. Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance posted in the previous part of the question. Round answers to o decimal places, e.g. 5,275.) Cash No. 101 Balance Date Explanation Ref Debit Credit May 31 Balance 3500 3500 Supplies Date No. 126 Explanation Ref Debit Credit Balance May 31 Balance 2000 2000 > May 31 Adjusting J1 1300 700 No. 130 Prepaid Insurance Date Explanation Ref Debit Credit Balance May 31 Balance 2400 2400 May 31 Adjusting 31 200 2200 Land No. 140 Date Explanation Ref Debit Credit Balance May 31 Balance 14000 14000 Buildings Date Explanation Ref Debit No. 141 Balance Credit May 31 Balance 61600 61600 Accumulated Depreciation Buildings Date Explanation Ref No. 142 Balance Debit Credit May 31 Adjusting 31 257 257 Equipment Date Explanation Ref Debit No. 149 Balance Credit

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

Energy Management Conservation And Audits

Authors: Anil Kumar, Om Prakash, Prashant Singh Chauhan, Samsher Gautam

1st Edition

0367494930, 978-0367494933

More Books

Students also viewed these Accounting questions