> Continuing Problem This problem continues the Canyon Canoe Company situation from Chapter 2 will need to use the unadjusted trial balance and posted T-accounts that in Chapter2. P3-46 Preparing adjusting entries and preparing an adjusted trial balan you preparej At December 31, the business gathers the following information for adjusting entries: a. Office supplies on hand, $165 b. Rent of one month has been used. Hint: See Dec. 1 transaction from Chapter 2) c. Determine the depreciation on the building using straight-line depreciation the 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 f. Canyon Canoes has earned $1,850 of canoe rental revenue that has not been g. Determine the depreciation on the canoes purchased on Novamber 3 using h. Determine the depreciation on the canoes purchased on December 2 i. Interest expense accrued on the notes payable, $50. that will be paid January 15, 2019. recorded or received ne depreciation. Assume the useful life of the canoes is - years and the residual value is $0. straight-line depreciation. Assume the useful life of the canoes is 4 years an residual value is $0. Requirements 1. Journalize and post the adjusting entries using the T-accounts that you completed in Chapter 2. In the T-accounts, denote each adj usting amount as Adj, and an account balance as Balance repare an adjusted trial balance as of December 31,2018 Date Dec. Land Account and Explanation DR CR 85,000 35,000 Buildin Common Stock Recived land/building in exchange for common stock Amber & Zach Dec. 1 aid Rent Cash 3,000 Paid rent in advance for 3 months for warehouse 3 Dec. 2 Fumiture 7.200 Notes Payable Purchase of Canoes with Note pavable 7Dec. 4 Office Supplies 500 Accounts Payable 500 urchase OTfice supphes 1 Dec. 9 Cash Service Revenue Rental of Canoes 5 Dec. 15 Accounts Receivable 3,500 Service Revenue Rented Canoes on account will pay next month 9 Dec. 16Cash 750 Uneamed Revenue Deposit advance from Rental Grou 750 3 Dec. 18 Utilities Payable Utilities Pavable 150 175 Cash Paid Utility and telephone bills 325 8 Dec. 19 Accounts Payable Cash Paid various accounts 2,000 325 295 2 Dec. 20 Utilities Expense Utilities Expense Utilities Payable Utilities Pavable 325 295 Ultility and Telephone to be paid next montih 9Dec.31 Salaries Expense Cash Faid wages 3Dec. 31 Dividends 100 100 Cash Paid dividend to stockholders Amber & Zach 3 Date 4Nov.1 Cash Account and Explanation DR CR 16,000 Common Stock Issued common stock to Amber & Zach 8 Nov. 2 aid Rent Cash 1.200 Paid rent in advance 12 Nov. 3 Fumiture Accounts Payable Purchase of Canoes 16 Nov.4 Office Supplies 17 750 Accounts Payable 750 Purchase Office supplies 20 Nov.7 ICash Service Revenue Rental of Canoes 24 Nov. 13 Salaries Expense Cash 1,500 Paid wages 28 Nov. 15 Dividends 50 Cash 50 30 Paid Stockholder dividend to Amber & Zach 32 Nov. 16 Utilities Expense 150 Utilities Pavable Utilities bill 35 175 36 Nov. 20 IUtilities Expense 37 Utilities Payable 175 Cell phone 40 Nov. 22 Accounts Receivable Service Revenue Rented Canoes to Early Start on account 44 Nov.26 Accounts Payable Cash 46 47 Paid $1000 toward account on Canoe purchase Nov 3 8 Nov. 28 Cash 49 750 Accounts Receivable 750 Early Start payment from rental on Nov 22 2 Nov. 30 Dividends 100 Cash 100 Paid dividend to stockholders Amber& Zach ASSETS LIABILITIES EQUITY Debit-Credit Check Contributed Capit+ Retained Earnings CR DR 155,325 Cash Accounts Payable Common Stock Dividends + Service/Canoe Revenu 1,400 3,000 4,500 3,500 12,400 Rent Expense 16,000 1,200 1,000 2,000 4,800 750 500 3,050 16,000 35,000 85,000 136,000 50 100 300 450 1,400 750 50 4,500 1,000 100 3,000 175 150 2,000 1,800 300 0 750 Salaries Expense Utilities Pavable 1,500 1,800 150 150 295 295 3,300 12,125 Unearned Reven Utilities Expense 150 295 445 750 Accounts Receivable 750 3,000 3,500 5,750 750 Notes Payable UtilityTelphone Expense 7,200 175 325 500 Office 750 500 1,250 7,200 Utilitiy Telphone Payable 175 325 325 175 Prepaid Rent 1,200 3,000 4,200 Land 85,000 85,000 Buildin 35,000 35,000 Furniture/Canoes 4,800 7,200 12.000 TRIAL BALANCE Debit Credit Account Title Cash Accounts Receivable Office Supplies Prepaid Rent Land Building Furniture/Canoes Accounts Payable Utilities Payable 12,125 5,750 1,250 4,200 85,000 35,000 12,000 3,050 295 750 7,200 136,000 2 Unearned Revenue Notes Payable 1Common Stock 450 Dividends Service Revenue Rent Expense 12,400 0 3,300 3 Salaries Expense Telephone Payable Telephone Expense 325 1 Utilities Expense 2 TOTALS 500 445 160,020 160,020 Canyon Canoe Company Income Statement November 1 to December 31th 2018 Revenues: Canoe Rentals 12 Hint: Click inside this cell, type an equals sign (), click on the Service Revenue amount in the Trial Balance, then press the Enter key Expenses $ 3,300 Wages Utilities Telephone s 445 500 4,245 8,125 Total Expenses Net Income Canyoh Canoe Company Statement of Retained Earnings November 1 to December 31th 2018 Earnings as of November 1, 2018 Net Income for Nov/Dec Less paid dividend Earning as of December 31,2018 8,155 8,155 (450) 7,705 Balance Sheet December 31,2018 Assets Liabilities Cash Accounts Receivable Office Supplies Prepaid Rent Furniture/Canoes Land Building 12,125 5,750 1,250 4,200 12,000 85,000 35,000 Accounts Payable Unearned Revenue Utilties Payable Telephone Payable Notes Payable 3,050 750 295 325 7,200 Total Liabilities 11,620 Stockholder's Equity Common Stock Retained Total Stockholder's Equity Total Liabilities and Stockholder's Equity 136,000 7,705 143,705 155,325 Total Assets 155,325 DEBIT RATIO: TOTAL LIABILITIES DIVIDED BY TOTAL ASSETS 11,620.00 155,325.00 EQUALS 0.074 DEBIT RATIO 7.48%