Cedar River Corporation Chart of Accounts CEDAR RIVER CORPORATION Unadjusted Trial Balance July 31, 2024 Account Title Debit Credit Land Cash Accounts Receivable Office Supplies Prepaid Rent Building Accumulated Depreciation - Building Furniture Cash $ 344,150 Accounts Receivable 8,000 Office Supplies 1,550 Prepaid Rent 24,000 55,000 Building 120,000 Accumulated Depreciation - Building Furniture 25,000 Accumulated Depreciation - Furniture Accumulated Depreciation - Furniture Accounts Payable Accounts Payable Utilities Payable Utilities Payable $ 200 300 Salaries Payable Salaries Payable Interest Payable Unearned Revenue Notes Payable Common Stock Retained Earnings Dividends Service Revenue Rent Expense Salaries Expense Supplies Expense Utilities Expense Depreciation Expense - Building Depreciation Expense - Furniture Interest Expense Salaries Expense Supplies Expense Utilities Expense Depreciation Expense - Building Depreciation Expense - Furniture Interest Expense Total Interest Payable Unearned Revenue Notes Payable Common Stock 22,000 120,000 422,000 Retained Earnings Dividends 1,500 Service Revenue Rent Expense 39,000 24,000 300 $ 603,500 $ 603,500 Transactions for July 2024 1 Four months of rent was prepaid earlier in the month. 2 A physical count revealed $750 of office supplies on hand at the end of the month. 3 The furniture has a residual value of $4,000, and estimated useful life of five years. Use straight line depreciation. The building has a residual value of $25,000, and estimated useful life of 20 years. Use straight line 4 depreciation. 5 Cedar River has earned $14,000 of the revenue that had been collected in advance. Cedar River pays $10,500 every Friday for a five-day work week - Monday through Friday. July 31 is a 6 Tuesday. Accrue two days of salaries. 7 One month's interest on the Note Payable is $500. 8 Revenue of $1200 has been earned. The client will pay next month. 7 Date 8 9 Account and Explanation Jul 31 Prepaid Rent Cash To record rent expense. (Four months of rent was prepaid earlier in the month Calculation: 10 11 12 13 31 14 15 16 To record office supplies used (A physical count revealed $750 of office supplies on hand at the end of the month) Calculation: 17 18 31 19 20 21 To record depreciation on furniture. (The furniture has a residual value of $4,000, and estimated useful life of five years. Use straight line Calculation: 22 23 31 24 25 26 To record depreciation on the building (The building has a residual value of $25,000, and estimated useful life of 20 years. Use straight line Calculation: 27 28 31 29 30 31 32 31 33 34 35 36 37 31 38 39 40 41 31 42 43 To record service revenue earned that was collected in advance. (Cedar River has earned $14,000 of the revenue that had been collected in advance. To accrue salaries expense (Cedar River pays $3,000 every Friday for a five-day work week - Monday through Friday July 31 is a Tuesday Accrue two days of salaries) Calculation: To accrue interest expense. (One month's interest on the Note Payable is $300. To accrue service revenue. (Revenue of $900 has been earned. The client will pay next month DR 24,000 CR 24,000 Cash Bal 344,150 344,150 ASSETS LIABILITIES STOCKHOLDERS' EQUITY Debit-Credit Check DR CR Building Accounts Payable Common Stock Rent Expense 0 603,500 603,500 Trial Balance 0 Adj. Trial Balance Bal 120,000 200 Bal. 422,000 Bal. Bal 0 120,000 200 422,000 0 Accumulated Dep- Accounts Receivable Building Utilities Payable Retained Earnings Salaries Expense Bal 8,000 O|Bal. 300 Bal. 0|Bal. Bal 24,000 8,000 0 300 0 Office Supplies Furniture Bal 1,550 Bal 25,000 1,550 25,000 Salaries Payable Dividends O Bal. Bal 1,500 Bal 0 1,500 24,000 Supplies Expense 0 Accumulated Dep- Prepaid Rent Furniture Interest Payable Service Revenue Utilities Expense Bal 24,000 O Bal. O Bal. 39,000 Bal. Bal 300 24,000 0 0 300 Bal. Land 55,000 55,000 Unearned Revenue 22,000 Bal. 22,000 39,000 Bal Dep Expense- Building 0 Dep Expense- Notes Payable Furniture 120,000 Bal. Bal 0 120,000 0 Bal Interest Expense 0 0 Income Statement Balance Sheet Credit Debit Credit Debit Credit 9 10 11 CEDAR RIVER CORPORATION Worksheet July 31, 2024 12 13 14 Trial Balance Adjustments Adjusted Trial Balance 15 Account Title Debit Credit Debit Credit Debit 16 Cash $ 344,150 $ 17 Accounts Receivable 8,000 18 Office Supplies 1,550 19 Prepaid Rent 24,000 20 Land 55,000 21 Building 120,000 22 Accumulated Depreciation - Buildin 23 Furniture 25,000 24 Accumulated Depreciation - Furnitu 25 Accounts Payable 26 Utilities Payable 200 300 27 Salaries Payable 28 Interest Payable 29 Unearned Revenue 30 Notes Payable 31 Common Stock 22,000 120,000 422,000 32 Retained Earnings 33 Dividends 1,500 39,000 34 Service Revenue 35 Rent Expense 36 Salaries Expense 37 Supplies Expense 24,000 38 Utilities Expense 300 39 Depreciation Expense - Building 40 Depreciation Expense - Furniture 41 Interest Expense 42 Total $ 603,500 $ 603,500 0 0 0