Canyon Canoe Company began operations on November 1, 2018. The November and December transactions and the information used to prepare the adjusting entries at December 31, 2018 follows: (Click the icon to view the November and December transactions and the December 31 adjustment data.) Canyon Canoe Company prepared an unadjusted trial balance at December 31, adjusting entries for the two months ended December 31, and an adjusted trial balance at December 31 as follows: (Click the icon to view the unadjusted trial balance.) (Click the icon to view the adjusting journal entries.) (Click the icon to view the adjusted trial balance.) Read the requirements Requirement 1. Complete the worksheet at December 31, 2018. Use the trial balances and adjusting entries provided. Complete the worksheet one section at a time, beginning with the Unadjusted Trial Balance columns. When completing the Adjustments column, enter a posting reference along with each debit or credit amoun that corresponds to the letter of the adjusting entry (a., b., C., etc.) (Leave unused cells blank. Do not enter a "0" for any zero balances. Abbreviations used: Accum. = Accumulated, Depr. = Depreciation.) Canyon Canoe Company Worksheet December 31, 2018 Unadjusted Trial Balance Enter any number in the edit fields and then click Check Answer. 14 parts Clear All Check Answer remaining 0 Requirements 1. Complete the worksheet at December 31, 2018. Use the trial balances and adjusting entries provided. 2. Prepare an income statement for the two months ended December 31, 2018. Use the worksheet prepared in Requirement 1 or the adjusted trial balance provided. 3. Prepare a statement of owner's equity for the two months ended December 31, 2018. 4. Prepare a classified balance sheet (report form) at December 31, 2018 Assume the note payable is long-term. 5. Journalize and post the closing entries at December 31, 2018. T-accounts for Income Summary and Wilson, Capital have been opened for you. Determine the ending balance for each account. Denote each closing amount as Clos. and each account balance as Bal. 6. Prepare a post-closing trial balance at December 31, 2018 Print Done More Info Nov. 1 Received $16,000 cash to begin the company and gave capital to Amber Wilson 2 Signed a lease for a building and paid $1,200 for the first month's rent. 3 Purchased canoes for $4,800 on account 4 Purchased office supplies on account, $750. 7 Earned $1,400 cash for rental of canoes. 13 Paid $1,500 cash for wages. 15 Wilson withdrew $50 cash from the business. 16 Received a bill for $150 for utilities. (Use separate payable account.) 20 Received a bill for $175 for cell phone expenses. (Use separate payable account.) 22 Rented canoes to Early Start Daycare on account, $3,000. 26 Paid $1,000 on account related to the November 3 purchase. 28 Received $750 from Early Start Daycare for canoe rental on November 22 30 Wilson withdrew cash of $100 from the business. Dec. 1 Amber contributed land on the river (worth $85,000) and a small building to use as a rental office (worth $35,000) in exchange for capital. 1 Prepaid $3,000 for three months' rent on the warehouse where the company stores the canoes. 2 Purchased canoes signing a notes payable for $7,200. 4 Purchased office supplies on account for $500. 9 Received $4,500 cash for canoe rentals to customers. 15 Rented canoes to customers for $3,500, but will be paid next month. 16 Received a $750 deposit from a canoe rental group that will use the canoes next month. 18 Paid the utilities and telephone bills from last month. 19 Paid various accounts payable, $2,000. 20 Received bills for the telephone (5325) and utilities ($295) which will be paid later. 31 Paid wages of $1,800. 31 Wilson withdrew cash of $300 from the business. Data used for the adjusting entries at December 31 follows: a. Office supplies on hand, $165 b. Rent of one month has been used. (Hint: See Dec. 1 transaction) c. Determine the depreciation on the building using straight-line depreciation. Assume the useful life of the building is five years and the residual value is $5,000. (Hint: The building was purchased on December 1.) d. $400 of unearned revenue has now been earned. e. The employee who has been working the rental booth has earned $1,250 in wages that will be paid January 15, 2019. f. Canyon Canoe has earned $1,850 of canoe rental revenue that has not been recorded or received. g. Determine the depreciation on the canoes purchased on November 3 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0. h. Determine the depreciation on the canoes purchased on December 2 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0. i. Interest expense accrued on the notes payable, 550. Print Done Reference - X Account Title Cash Accounts Receivable Office Supplies Prepaid Rent Land Building Canoes Accounts Payable Canyon Canoe Company Unadjusted Trial Balance December 31, 2018 Balance Debit Credit 12,125 5,750 1,250 3,000 85,000 35,000 12,000 $ 3,050 GA 3,050 295 325 750 7,200 136,000 Accounts Payable Utilities Payable Telephone Payable Unearned Revenue Notes Payable Wilson, Capital Wilson, Withdrawals Canoe Rental Revenue Rent Expense Wages Expense Utilities Expense Telephone Expense Total 450 12,400 1,200 3,300 445 500 $ 160,020 $ 160,020 Print Done Reference X Date Debit Credit Dec. 1,085 Adj. (a) 1,085 Dec. 1,000 Adj. (b) Accounts and Explanation 31 Supplies Expense Office Supplies To record office supplies used. 31 Rent Expense Prepaid Rent To record rent expense. 31 Depreciation ExpenseBuilding Accumulated Depreciation-Building To record depreciation on building. 31 Unearned Revenue 1,000 Dec. 500 Adj. (c) 500 Dec. 400 Adj. (d) Canoe Rental Revenue 400 To record revenue earned that was collected in advance Dec. 1,850 Adj. (f) 1,850 200 Dec. Adj. (g) 200 To accrue wages expense. 31 Accounts Receivable Canoe Rental Revenue To accrue canoe rental revenue. 31 Depreciation Expense-Canoes Accumulated Depreciation-Canoes To record depreciation on canoes. 31 Depreciation Expense-Canoes Accumulated DepreciationCanoes To record depreciation on canoes. 31 Interest Expense Interest Payable To accrue interest expense. Dec. 150 Adj. (h) 150 Dec. 50 Adj. (0) 50 Print Done Reference - X Canyon Canoe Company Adjusted Trial Balance December 31, 2018 Balance Account Title Debit Credit Cash $ 12,125 Accounts Receivable 7,600 Office Supplies 165 Prepaid Rent 2,000 Land 85,000 Building 35,000 Accumulated Depreciation-Building $ 500 Canoes 12,000 12,000 350 3,050 295 Canoes Accumulated Depreciation-Canoes Accounts Payable Utilities Payable Telephone Payable Wages Payable Unearned Revenue Interest Payable Notes Payable Wilson, Capital Wilson, Withdrawals Canoe Rental Revenue Rent Expense 325 1,250 350 50 7,200 136,000 450 14,650 2,200 7,200 136,000 450 14,650 2,200 4,550 Notes Payable Wilson, Capital Wilson, Withdrawals Canoe Rental Revenue Rent Expense Wages Expense Utilities Expense Telephone Expense Supplies Expense Depreciation ExpenseBuilding Depreciation Expense-Canoes Interest Expense 445 500 1,085 500 350 50 $ Total 164,020 $ 164,020 Print Done