Everly Company Unadjusted Trial Balance December 31, 2018 106,000 28,000 7,500 30,000 110,000 15,000 80,000 Cash Accounts Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total 46,000 8,000 17,900 12,500 50,000 46,000 47,600 5,000 465,500 12,000 45,000 2,000 48,000 10,000 143,000 14,000 3,000 35,000 693,500 693,500 Part 1: Prepare adjusting journal entries using the unadjusted trial balance provided to you in Question 1 of the Financial Statement Homework quiz on D2L and the Page 1 of 9 Unadjusted Trial Balance (do not create any new account names and do not abbreviate account names). 1. The prepaid insurance balance reflects a 12-month insurance policy which started on Sept. 1, 2018, and no adjustments were made from Sept. 1 - Dec. 31, 2018. Write the adjusting journal entry for Dec. 31, 2018. Insurance Expense A/C Debit 10.000 TO Prepaid insurance A/C 10,000 2. 2. Additional depreciation expense of $15,000 needs to be recorded for the year ended 2018. Depreciation Expense A/C Debit 15,000 To Accumulated depreciation A/C 15,000 3. 3. Wages due to employees of $8,000 need to be recorded at year end. These wages will be paid to employees on January 9, 2019. (next month) | Wages Expense ATC Debit 8.000 To wages payabll_AZC 8.000 4. 4. The company has completed $12,900 of the amount in unearned revenue as of Dec. 31st Unearned Revenue AlC Debit 12.900 To Service Revenue 12.900 5. 5. In Dec. the company provided services worth $8,000 to clients that were not yet billed or recorded by Dec. 31. Record the additional revenue. Accounts Receivable Alc debit 8,000 To Service Revenue 8,000 6. 6. On Dec 31st the company completed a physical count of their supplies and determined that only $4,000 of supplies are still on hand. Supplies Expense A/C Debut 3,500 To Supplies 3,500 Page 3 of 11 Part 2: Post the adjusting journal entries to t-accounts: (Hints on getting started: Above each T-account, write the account name of each account affected by an adjusting journal entry (you may not need to use all of the T- accounts). Write in the unadjusted balance for each of these accounts from the Unadjusted Trial Balance provided in question 1 of your D2L quiz (the unadjusted balance might be a debit, a credit, or zero balance). Now you are ready to post your adjusting journal entries from Part 1 to the corresponding T-accounts and calculate adjusted balances. Accounts Receivable Beg. Bal $28,000 $8,000 (5) Supplies Expense Beg. Bal $14,000 (6) $3,500 Wages Expense Beg. Bal $143,000 (3) $8,000 $36,000 End. Bal $17.500 End-Bal $151,000 Supplies Beg.Bal $7,500 $3,500 16) WAS Payable Unearned revenue $12,500 Beg. Ball4)92,900 $17,900 158,000 (3) $4,000 Prepaid insurance Beg.Bal $36,000 $10,000 (1) $20,500 End Bal $5,000 end. bal. ACCUmulated Depreciation Depreciation expense $ 46,000 $15,000 (2) $61,000 end bal End.Bal $20,000 insurance Expense seg. Bal $10,000 1) 10,000 Service Revenue $475,500 $12,900 (4) $8,000 15) nd. Bal $20,001 $486,400 end bal Page 3 of 9 t ) Part 3: Prepare the Adjusted Trial Balance (i.e., after the previous 6 jour posted) Everly Company Company Name) December 31, 2018 (Date) Adjusted Trial Balance Debit Credit Cash $106,000 Accounts Receivable $ 36,000 Supplies $4,000 Prepaid Insurance $ 20,000 Inventory $110.000 Vehicle $15,000 Equipment $ 80.000 Accumulated Depreciation $61,000 Accounts Payable $8,000 Unearned Revenue $5,000 Wages Payable $20,500 Long-Term Notes Payable $50,000 Common Stock $46,000 Retained Earnings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Page 5 of 11 Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total Part 4: Based on the Adjusted Trial Balance provided in Question 2 of the Financial Statement Homework quiz on D2L, prepare in proper format the Income Statement, the Retained Earnings Statement, and a Classified Balance Sheet (in this order). Include all appropriate headings, dates, titles, subtotals and totals. (You may not use all the lines provided in the statement formats below). The Adjusted Trial Balance can be downloaded from the D2L quiz by right clicking on the image and saving it to your computer. DO NOT USE THE ADJUSTED TRIAL BALANCE CREATED IN PART 3