Comprehensive Problem: Reviewing the Accounting Cycle

Tarkington Freight Service provides delivery of merchandise to retail grocery stores in the Northeast. At the beginning of 2019, the following account balances were available:

Cash	$92,100		Accumulated Depreciation
Accounts receivable	361,500		(Equipment)	$580,000
Supplies	24,600		Land	304,975
Prepaid Advertising	2,000		Accounts Payable	17,600
Building	2,190,000		Wages Payable	30,200
Accumulated Depreciation			Notes Payable (due in 2023)	1,000,000
(Building)	280,000		Common Shares	1,400,000
Equipment	795,000		Retained Earnings, 12/31/2018	462,375

During 2019 the following transactions occurred:

1. Tarkington performed deliveries for customers, all on credit, for $2,256,700. Tarkington also made cash deliveries for $686,838.
2. There remains $286,172 of accounts receivable to be collected at December 31, 2019.
3. Tarkington purchased advertising of $138,100 during 2019 and debited the amount to prepaid advertising.
4. Supplies of $27,200 were purchased on credit and debited to the supplies account.
5. Accounts payable at the beginning of 2019 were paid early in 2019. There remains $5,600 of accounts payable unpaid at year end.
6. Wages payable at the beginning of 2019 were paid early in 2019. Wages were earned and paid during 2019 in the amount of $666,142.
7. During the year, Trish Hurd, a principal stockholder, purchased an automobile costing $42,000 for her personal use.
8. One-half year's interest at 6% annual rate was paid on the note payable on July 1, 2019.
9. Property taxes were paid on the land and buildings in the amount of $170,000.
10. Dividends were declared and paid in the amount of $25,000.

The following data are available for adjusting entries:

• Supplies in the amount of $13,685 remained unused at year end.
• Annual depreciation on the warehouse building is $70,000.
• Annual depreciation on the warehouse equipment is $145,000.
• Wages of $60,558 were unrecorded and unpaid at year end.
• Interest for 6 months at 6% per year on the note is unpaid and unrecorded at year end.
• Advertising of $14,874 remained unused at the end of 2019.
• Income taxes of $482,549 related to 2019 are unpaid at year end.

Prepare the adjustments using the adjusting entries data, prepare the adjusting journal entries.

1a. Post the beginning bsances and the transactions as to the following accounts. Note: La T-Secourts Isn't necced, love it blank. Cash Accounts Receivable Bal. ic) (a al ch) 03 Ral. . Supplies Prepaid Advertising Bal. Ad. Lal. Building (Warehouse) Accum. Dapr. (Building) Bal. Adj. Bal Bell Equipment Accum. Depr. (Equipment) Bal Bal. Bol Land Accounts Payable Bal. Bal di Lal. Check Hy Work Next Bal. Wages Payable Interest Payable .1 Bell Bel Notes Payable Income Taxes Payable Ad1. Common Stock Retained Earnings 5. BS Dividends Service Revenue 019 al Wages Expense Interest Expense if A:1 Bal. Bal. Property Taxes Expense Supplies Expense Bal. Bal. Ched My Work Next > Depreciation Expanse Inconia Taxes Expande Aj. Advertising Expense Adi 1b. Prepare foumal entries for transaclans a through 1. Et na crty is required, select "Na entry culrad tar all accounts and leave associated. Enter arounts in the same crier a given in the list of transactions. Racord earned revenue (Recurd wanned revenue (Racor receipt of cash C. (Record prepaid advertising (Recuru purchase v supplies on ecouTL) Check My Work Next > wak Recard payment on acrourt) f. Record peyment of neges from prior year) Record we expense) 9. Recard puchasad automobile Record interest expe) (Record prepety tax expense) 1. Rccord payment of dividends) 2. The following cate are available for eljusting ertries: Supplies in the amount of $13,635 remained unused at year end. urual coreciston on the warchouse building is 370,000. Annual cepreciat on cn the warchouse equipment is $115,000. vages of $60.sy were unrecorded and unpaid a year end. . Interest for 6 months at per vear on the rote is unpaid end unrecorded at year end. . Avertising of $14,074 reineined unused at the end of 2019. Income Laxes of $482.549 retu 2018 leur pical ved encl. Prepare the cujusliners using the adjusting eilries old, prepare the eljusing ournal entries Dec. 31 Check My Work 2. The following data are available for adjusting entries: Supplies in the amount of $13.665 remained unused a year end. Anual depreciation on the warehouse building /U.UCO. Arnual depreciation on the warehouse equipment is $145,000 . Wages of $005U were unrecorded and unpaid a year end Interest for 6 months at 0% per year on the note is unpaid and unrecorded at year end. Advertising of $24.674 remained unused at the end of 2019 Income taxes of $482,549 reated to 2013 are urpad at year end. Prepare the acjustments using the adjust ng cores data, prepare the adjusting journal entries. (Record use of supplies) Dec 31 (record depredation on balding Dec. 31 (Kecord deprecation on equipment) (Record wayes due to employees) Dec. 31 Record unpaid interest on ncte De 31 (Record use of prepaid advertising) Dec. 31 {record income taxes awed) Crack My Work Next >