Create an unadjusted trial balance, then adjust the entries and create an income statement. The beginning information, as well as the journal and ledger have been given below.
Debit Credit Vans a - Account Cosh Notes Payable (for cash barcowed vianoles payable) b Land Cash (for land bought with cash) C Cash Accounts Receivable Service Revenue (for services provided) I Cash Contributed Capital (for shares of stock issued) c Selling Expense. Cash Accounts Payable (for paid & unpaid sewing expense) 15 Cash Accounts Receivable I for collected accounts receivable) g Other Assets Cash (for other assets purchased) n Accounts Payable I Cash for paid accounts payable) Trans Debit Credit Account Supplies Accounts Payable (for Supplies purchased on account) 19 no entry Dividends Declared (for cash dindend declared and paid) Cash Beg Bali 3 6 0 12 e) 1209 a 70 10 Acct. Receivables Beg Bal 5 1 24 0 End B4: 21 Supplies Begbal: 12 D End Bal: 30 ) F) Endbal: 24 431 Equipment Beg. Bal. 40 End Bal. 40 - Accum. Dep. (on Equipment Beg. Boli u End Bali 6 Land Beg Bal: 0 b) 9 End. Bal: 9 b) - Holes Pouobie Beg.Bal: Other Beg. Bali a) End Bal: Accounts Public 13 Beg Bol. e) Assets u 10 141 13 15 0 End Bal: 12 | End Bal. 25 Contributed Retained Earnings 0 Capital Beg.Bal: 65 d) 3 Ena Bali 68 Beg Bali Ena Bali 8 8 Dividends Declared k) 17 BeaBal: End Bal: 171 Service Berenne Beg. Bali (c) End Bali o 160 160 Selling Expense Beg.Bali ol e 851 Ena Bal: 851 day began operations of the machine shop (H Brothers Harry and Herman Hausyerday H Tool, Inc.) on January 1, 2007. The a 2007. The annual reporting period ends Dee seriod ends December 1. The us (the amounts are rounded to thousands of doll balance on January 1, 2009, follows the simplify): Account Titles Account No. Au Cash Accounts receivable Supplies Land Equipment Accumulated depreciation (on equipment) Other assets Accounts payable Notes payable Wages payable Interest payable Income tax payable Contributed capital Retained earnings Dividends declared Service revenue Depreciation expense Income tax expense Interest expense Selling expenses wage expense . 45 suppixexpeuse $ 84 Transactions during 2009 (summarized in thousands of dollars) follow: 4. Borrowed $12 cash on a short-term note payable dated March 1, 2009. b. Purchased land for future building site, paid cash, $9. c. Earned revenues for 2009, $160, including $40 on credit and $120 collected in cash. d. Issued additional shares of stock for $3. e. Recognized Selling expense for 2006, $85, including $15 on credit and $70 paid in cash. f. Collected accounts receivable, $24. & Purchased other assets, $10 cash. h. Paid accounts payable, $13. i. Purchased supplies on account for future use, $18. j. Signed a $25 service contract to start February 1, 2010. k. Declared and paid a cash dividend, $17. Data for adjusting journal entries: I Supplies counted on December 31, 2009, $10. m. Depreciation for the year on the equipment, $6. n. Accrued interest on notes payable of $1. o. Wages earned since the December 24 payroll not yet paid, $12. p. Income tax for the year was $8. It will be paid in 2010
