EXERCISES & PROBLEMS (total of 70 points) 1.) Adjusting entries. 10 points Present, in journal form, the adjustments that would be made on July 31, 2018, the end of the fiscal year, for each of the following 1. The supplies inventory on August 1, 2017 was $9,350. Supplies costing $24,150 were acquired during the year and charged to the supplies inventory. A count on July 31, 2018 indicated supplies on hand of $8,810. 2. On April 30, a ten-month, 6% note for $30,000 was received from a customer. *3. On May 1, $20,000 was collected as rent for one year and a nominal account was credited. 2.) Ex. 3-127Accrual adjusting entries. 10 points The following information relates to the Wallstrom Company at the end of 2017. The accounting period is the calendar year. 1. Employees are paid every Friday for the five-day week ending on that day. Salaries amount to $4,000 per week. The accounting period ends on a Tuesday. 2. A note for $5,000 was received from a customer in a sales transaction on April 1, 2017 The note matures in one year and bears 8% interest. 3. On September 1, 2017, Wallstrom borrowed $10,000 cash by signing a note payable due in one year at 6% interest. Instructions Using the information given above, prepare the necessary adjusting entries at December 31, 2017. 3. Financial statements. (15 points) The adjusted trial balance of Ryan Financial Planners appears below. Using the information from the adjusted trial balance, you are to prepare for the month ending December 31: 1. 2 3. an income statement. a retained earnings statement. a balance sheet. RYAN FINANCIAL PLANNERS Adjusted Trial Balance December 31, 2017 Credit Debit $ 3,900 2,200 1,800 16,000 HEINO HEHE MI Cash Accounts Receivable, Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Unearned Service Revenue. Common Stock Retained Earnings Dividends. Service Revenue Supplies Expense. Depreciation Expense. Rent Expense. $ 4,000 3,800 5,000 10,000 4,400 2,000 4,700 600 2,500 2.900 $31.900 $3111900 EXERCISES & PROBLEMS (total of 70 points) 1.) Adjusting entries. 10 points Present, in journal form, the adjustments that would be made on July 31, 2018, the end of the fiscal year, for each of the following 1. The supplies inventory on August 1, 2017 was $9,350. Supplies costing $24,150 were acquired during the year and charged to the supplies inventory. A count on July 31, 2018 indicated supplies on hand of $8,810. 2. On April 30, a ten-month, 6% note for $30,000 was received from a customer. *3. On May 1, $20,000 was collected as rent for one year and a nominal account was credited. 2.) Ex. 3-127Accrual adjusting entries. 10 points The following information relates to the Wallstrom Company at the end of 2017. The accounting period is the calendar year. 1. Employees are paid every Friday for the five-day week ending on that day. Salaries amount to $4,000 per week. The accounting period ends on a Tuesday. 2. A note for $5,000 was received from a customer in a sales transaction on April 1, 2017 The note matures in one year and bears 8% interest. 3. On September 1, 2017, Wallstrom borrowed $10,000 cash by signing a note payable due in one year at 6% interest. Instructions Using the information given above, prepare the necessary adjusting entries at December 31, 2017. 3. Financial statements. (15 points) The adjusted trial balance of Ryan Financial Planners appears below. Using the information from the adjusted trial balance, you are to prepare for the month ending December 31: 1. 2 3. an income statement. a retained earnings statement. a balance sheet. RYAN FINANCIAL PLANNERS Adjusted Trial Balance December 31, 2017 Credit Debit $ 3,900 2,200 1,800 16,000 HEINO HEHE MI Cash Accounts Receivable, Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Unearned Service Revenue. Common Stock Retained Earnings Dividends. Service Revenue Supplies Expense. Depreciation Expense. Rent Expense. $ 4,000 3,800 5,000 10,000 4,400 2,000 4,700 600 2,500 2.900 $31.900 $3111900