Exercise 1-9 Using the accounting equation A1 Determine the missing amount from each of the separate situations a, b, and e below. 1234 A Assets S (a) 100,000 154,000 B Liabilities $ 20,000 34,000 (c) Equity $45,000 (b) 40,000 Problem 2-1B Preparing and posting journal entries; preparing a trial balance P1 A1 Humble Management Services opened for business and completed these transactions in September. Sep. H. Humble, the owner, invested $38,000 cash along with office equipment valued at $15,000 in the company. 2 The company prepaid $9,000 cash for 12 months' rent for office space. Hint: Debit Prepaid Rent for $9.000. 4 The company made credit purchases for $8.000 in office equipment and $2,400 in office supplies. Payment is due within 10 days. 8 The company completed work for a client and immediately received $3,280 cash. 12 The company completed a $15,400 project for a client, who must pay within 30 days. 13 The company paid $10,400 cash to settle the payable created on September 4. 19 The company paid $1,900 cash for the premium on an 18-month insurance prepaid policy. Hint Debit Prepaid Insurance for $1,900. 22 The company received $7,700 cash as partial payment for the work completed on September 12. 24 The company completed work for another client for $2,100 on credit. 28 H. Humble withdrew $5,300 cash from the company for personal use. 29 The company purchased $550 of additional office supplies on credit. 30 The company paid $860 cash for this month's utility bill. Required 1. Prepare general journal entries to record these transactions Exercise 3-9 Preparing adjusting entries P1 P3 P4 For each of the following separate cases, prepare adjusting entries required of financial statements for the year ended December 31. Entries can draw from the following partial chart of accounts: Cash; Interest Receivable; Supplies; Prepaid Insurance; Equipment; Accumulated Depreciation-Equipment: Wages Payable: Interest Payable: Unearned Revenue; Interest Revenue: Wages Expense; Supplies Expense: Insurance Expense; Interest Expense; and Depreciation Expense-Equipment. a. Wages of $8,000 are earned by workers but not paid as of December 31. b. Depreciation on the company's equipment for the year is $18,000. c. The Supplies account had a $240 debit balance at the beginning of the year. During the year, $5,200 of supplies are purchased. A physical count of supplies at December 31 shows $440 of supplies available. d. The Prepaid Insurance account had a $4,000 balance at the beginning of the year. An analysis of insurance policies shows that $1.200 of unexpired insurance benefits remain at December 31. e. The company has earned (but not recorded) $1.050 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. f. The company has a bank loan and has incurred (but not recorded) interest expense of $2,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5. Problem 4-2B Preparing a work sheet, adjusting and closing entries, and financial statements c1 P1 P2 The following unadjusted trial balance is for Power Demolition Company at its April 30 current fiscal year-end. The credit balance of the J. Bonn, Capital account was $46,900 on April 30 of the prior year, and the owner invested $40,000 cash during the current fiscal year. Unadjusted Trial Balance April 30 No. Account Title 101 Cash 126 Supplies Debit Credit $ 7,000 16,000 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 12,600 200,000 $ 14,000 6,800 0 0 0 213 Property taxes payable 0 251 Long-term notes payable 30,000 301 J. Bonn, Capital 86,900 302 J. Bonn, Withdrawals 12,000 403 Demolition revenue 187,000 612 Depreciation expense-Equipment 0 623 Wages expense 41,400 633 Interest expense 3,300 637 Insurance expense 0 640 Rent expense 13,200 652 Supplies expense 0 683 Property taxes expense 9,700 684 Repairs expense 4,700 690 Utilities expense 4,800 Totals $324,700 $324,700 Required 1. Prepare and complete a 10-column work sheet for the current fiscal year, starting with the unadjusted trial balance and including adjustments using the following additional information. a. Supplies available at the end of the current fiscal year total $7,900. b. Cost of expired insurance for the current fiscal year is $10,600. c. Annual depreciation on equipment is $7,000. d. April utilities expense of $800 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $800 amount owed must be recorded. e. Employees have earned $2,000 of accrued and unpaid wages at fiscal year-end. f. Rent expense incurred and not yet paid or recorded at fiscal year-end is $3,000. g. Additional property taxes of $550 have been assessed for this fiscal year but have not been paid or recorded at fiscal year- Page 157 end. L