Data for Adjusting Entries a. Office supplies on hand, $165 b. Rent of one month has been used. c. Determine the depreciation on the building using straight-line depreciation. Assume the useful life of the building is five years and the residual value is $5,000. 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 that will be paid January 15, 2019. f. Canyon Canoes has earned $1,850 of canoe rental revenue that has not been recorded or received g. Determine the depreciation on the canoes purchased on December 2 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0. h. Interest expense accrued on the notes payable, $50. i. It is estimated that the company is subject to a combined federal and state income tax rate of 20 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in January. A COMPREHENSIVE ACCOUNTING CYCLE PROBLEM: Subject #3 Amber and Zack Wilson decide that they will create a new corporation, Canyon Canoe Company. Canyon Canoe Company is a service-based company that rents canoes for use on local lakes and rivers. The business began operations on December 1, 2018 The new business use the following accounts Cash Office Supplies Land Accumulated Depreciation - Building Utilities Payables Interest Payable Notes Payables Retained earning Income Summary Rent Expense Supplies Expense Depreciation Expense - Building Interest Expense Accounts Receivable Prepaid Insurance Building Accounts Payable Salaries Payables Unearned Revenue Common stock Dividends Service Revenue Salaries Expense Utilities Expense Telephone Payable The corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December, the corporation entered into the following transactions Data for Adjusting Entries a. Office supplies on hand, $165 b. Rent of one month has been used. c. Determine the depreciation on the building using straight-line depreciation. Assume the useful life of the building is five years and the residual value is $5,000. 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 that will be paid January 15, 2019. f. Canyon Canoes has earned $1,850 of canoe rental revenue that has not been recorded or received g. Determine the depreciation on the canoes purchased on December 2 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0. h. Interest expense accrued on the notes payable, $50. i. It is estimated that the company is subject to a combined federal and state income tax rate of 20 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in January. ampade toy Model General A A Canal for Tale Cat Style A Der 1 A Ronde Da C DW Account Panie Ngu N 4 ande lanca Det Credit Dost Credit D De Db Credit AN Account Nam Oe Dit Ow D Det De Behit Credit Debit Credit Account Autine utan Date MoeStore Dube Credit Ledger accounts Balance Credit Worksheet Date Statement of RE Debit Balance Sheet Debit Closings Post- te certas (Comity Mool A General Date Cable Condos Format orange Ca Style MC Q M NEM | Credit De ve C Det Dane Credit Dulu NAM N Anne Since Debit Credit wance Credit Credit De Due Dabit Credit Acourt Name Account me: De Det Odt Dute Balance Det Credit Debit Credit Account ACCOUNT C O CA Dube Credit Debt Credit Debit Det Credit Ang Entre Isco Statement Ledger accounts Worksheet Statement of RE Balance Sheet Closing Entries Post Clos 19 W P te cel putie Competity Mode M General Care AA. het be Codenal forang Table 6 M ANE Ace ge have O be w AMNE Accomme Blace Det Der D Ow C CINE ber Credit Arne Acc Name Datu Dit O face Db Credit Date Debit Get Debit Credit Account Nam Chat hance Det A Name Dahit Det Credit Adjusting Sale Ledger accounts Worksheet Statement of RE Balance Sheet Closing Entries Posle 19 se cel Com Mode Ain View FA Wrap General 96 ) Cat For ACCUE ce Ort Ore Det walan C Account Name wance Debit Credit Out Dat Credit Add Entre Income Star Ledger accounts Worlat Statement ORE Balance Sheet Postio Horte General Call Body 11 G Marge Can CLOSING ENTRIES Account and Explanation DR CR Date . Le 12 TE 17 21 24 25 Journal Adjusting Entries Income Statement Data for Adjusting Entries a. Office supplies on hand, $165 b. Rent of one month has been used. c. Determine the depreciation on the building using straight-line depreciation. Assume the useful life of the building is five years and the residual value is $5,000. 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 that will be paid January 15, 2019. f. Canyon Canoes has earned $1,850 of canoe rental revenue that has not been recorded or received g. Determine the depreciation on the canoes purchased on December 2 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0. h. Interest expense accrued on the notes payable, $50. i. It is estimated that the company is subject to a combined federal and state income tax rate of 20 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in January. A COMPREHENSIVE ACCOUNTING CYCLE PROBLEM: Subject #3 Amber and Zack Wilson decide that they will create a new corporation, Canyon Canoe Company. Canyon Canoe Company is a service-based company that rents canoes for use on local lakes and rivers. The business began operations on December 1, 2018 The new business use the following accounts Cash Office Supplies Land Accumulated Depreciation - Building Utilities Payables Interest Payable Notes Payables Retained earning Income Summary Rent Expense Supplies Expense Depreciation Expense - Building Interest Expense Accounts Receivable Prepaid Insurance Building Accounts Payable Salaries Payables Unearned Revenue Common stock Dividends Service Revenue Salaries Expense Utilities Expense Telephone Payable The corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December, the corporation entered into the following transactions Data for Adjusting Entries a. Office supplies on hand, $165 b. Rent of one month has been used. c. Determine the depreciation on the building using straight-line depreciation. Assume the useful life of the building is five years and the residual value is $5,000. 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 that will be paid January 15, 2019. f. Canyon Canoes has earned $1,850 of canoe rental revenue that has not been recorded or received g. Determine the depreciation on the canoes purchased on December 2 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0. h. Interest expense accrued on the notes payable, $50. i. It is estimated that the company is subject to a combined federal and state income tax rate of 20 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in January. ampade toy Model General A A Canal for Tale Cat Style A Der 1 A Ronde Da C DW Account Panie Ngu N 4 ande lanca Det Credit Dost Credit D De Db Credit AN Account Nam Oe Dit Ow D Det De Behit Credit Debit Credit Account Autine utan Date MoeStore Dube Credit Ledger accounts Balance Credit Worksheet Date Statement of RE Debit Balance Sheet Debit Closings Post- te certas (Comity Mool A General Date Cable Condos Format orange Ca Style MC Q M NEM | Credit De ve C Det Dane Credit Dulu NAM N Anne Since Debit Credit wance Credit Credit De Due Dabit Credit Acourt Name Account me: De Det Odt Dute Balance Det Credit Debit Credit Account ACCOUNT C O CA Dube Credit Debt Credit Debit Det Credit Ang Entre Isco Statement Ledger accounts Worksheet Statement of RE Balance Sheet Closing Entries Post Clos 19 W P te cel putie Competity Mode M General Care AA. het be Codenal forang Table 6 M ANE Ace ge have O be w AMNE Accomme Blace Det Der D Ow C CINE ber Credit Arne Acc Name Datu Dit O face Db Credit Date Debit Get Debit Credit Account Nam Chat hance Det A Name Dahit Det Credit Adjusting Sale Ledger accounts Worksheet Statement of RE Balance Sheet Closing Entries Posle 19 se cel Com Mode Ain View FA Wrap General 96 ) Cat For ACCUE ce Ort Ore Det walan C Account Name wance Debit Credit Out Dat Credit Add Entre Income Star Ledger accounts Worlat Statement ORE Balance Sheet Postio Horte General Call Body 11 G Marge Can CLOSING ENTRIES Account and Explanation DR CR Date . Le 12 TE 17 21 24 25 Journal Adjusting Entries Income Statement