Question
Debit Cash Accounts Receivable 8,600 Notes Payable 14,000 Equipment 45,000 Insurance Expense 2,700 Accounts Payable Share Capital-Ordinary Service Revenue Salaries and Wages Expense 30,000
Debit Cash Accounts Receivable 8,600 Notes Payable 14,000 Equipment 45,000 Insurance Expense 2,700 Accounts Payable Share Capital-Ordinary Service Revenue Salaries and Wages Expense 30,000 Supplies Expense 3,700 Advertising Expense 1,900 Rent Expense 1,500 Utilities Expense 1,700 109,100 Credit 20,000 9,000 22,000 58,100 109,100 b. Adj. trial balance 112,725 c. Net income 19,000 Ending retained earnings 19,000 Total assets 71,800 Analysis reveals the following additional data. 1. The 3,700 balance in Supplies Expense represents supplies purchased in January. At June 30, 1,300 of supplies are on hand. 2. The note payable was issued on February 1. It is a 6%, 6-month note. 3. The balance in Insurance Expense is the premium on a one-year policy, dated April 1, 2020. 4. Service revenues are credited to revenue when received. At June 30, services revenue of 1,300 are unearned. 5. Revenue for services performed but unrecorded at June 30 totals 2,000. 6. Depreciation is 2,250 per year. Instructions a. Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6 months.) b. Prepare an adjusted trial balance. c. Prepare an income statement and retained earnings statement for the 6 months ended June 30 and a statement of financial position at June 30.
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