Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chapter 4 Completing the Accounting Cycle 219 PR 4-4B Ledger accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet Obj. 2, 3 income:

image text in transcribed
Chapter 4 Completing the Accounting Cycle 219 PR 4-4B Ledger accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet Obj. 2, 3 income: The unadjusted trial balance of Recessive Interiors at January 31, 2018, the end of the year, $46,150 follows: Recessive Interiors Unadjusted Trial Balance January 31, 2018 Debit Balances Supplies Prepaid Insurance. Equipment 13,100 8,000 7,500 113,000 16 Trucks Accumulated Depreciation-Trucks 12,000 18 27,100 Common Stock Retained Earnings. Dividends Service Revenue 4,500 96,400 155,000 31 41 2,000 7,600 ,350 450 325,000 Truck Expense 59 325,000 The data needed to determine year-end adjustments are as follows: (A) Supplies on hand at January 31 are $2,850. B) Insurance premiums expired during the year are $3,150. C) Depreciation of equipment during the year is $5,250. D) Depreciation of trucks during the year is $4,000. wages accrued but not paid at January 31 are $900. Instructions 1. For each account listed in the unadjusted trial balance, enter the balance in the appropri- ate Balance column of a four-column account and place a check mark ) in the Posting Reference column. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (3) as needed. 3. Journalize and post the adjusting entries, inserting balances in the accounts affected. Record the adjusting entries on Page 26 of the journal. The following additional accounts from Recessive Interiors' chart of accounts should be used: Wages Payable, 22; Depreciation Ex- pense-Equipment, 54; Supplies Expense, 55; Depreciation Expense-Trucks, 56; Insurance Expense, 57 4. Prepare an adjusted trial balance. 6. Journalize and post the closing entries. Record the closing entries on Page 27 of the journal. 7. Prepare a post-closing trial balance Prepare an income statement, a retained earnings statement, and a balance sheet. (Income Summary is account #34 in the chart of accounts.) Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry

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

Financial Accounting An Integrated Statements Approach

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

2nd Edition

324312113, 978-0324312119

More Books

Students also viewed these Accounting questions