Following is the November 30, 2016, Unadjusted Trial Balance of Paramount Moving and Storage. George Bliss owns 100% of the common stock. The temporary account balances represent the results recorded during the first 11 months of 2016; the balance in Common Stock has not changed since December 31, 2015. PARAMOUNT MOVING AND STORAGE Unadjusted Trial Balance November 30, 2016 Acc. # Debit Credit $ 78,110 450 8,700 7,475 350,000 200,000 185,000 Cash 101 Office Supplies 124 Moving Supplies 126 Prepaid Insurance 128 Trucks 153 A/D - Trucks 154 Building 173 A/D- Building 174 Accounts Payable 201 Interest Payable 203 Dividends Payable 205 Wages Payable 210 Unearned Storage Revenue 233 Long Term Note Payable 251 Common Stock 301 Retained Earnings 302 Moving Revenue 401 Storage Revenue 402 Deprec. Expense - Trucks 506 Deprec. Expense - Building 511 Wages Expense 523 Interest Expense 533 Insurance Expense 537 Office Supplies Expense 550 Moving Supplies Expense 552 Advertising Expense 555 Repairs & Maintenance Expense 569 General & Admin. Expense 572 Income Summary 901 Total 29,120 2,350 0 6,600 0 1,700 245,000 30,000 4,605 179,600 26,750 0 0 41,700 0 0 0 5,900 31,510 16,880 725,725 725,725 Check Figures for Worksheets: Unadjusted TB Adjusted TB 792,335 880,790 Adjustments Net Income 106,520 31,050 The following transactions occurred during the month of December, 2016: Dec. 2 5 6 7 10 13 15 17 21 Paid insurance premiums of $8,100 in advance. Paid $900 for an advertising campaign. Purchased $130 of office supplies on credit. Purchased $1,560 of moving supplies on credit. Deposited $8,700 of moving fees earned during the week. Acquired truck worth $56,000 by paying $6,000 cash and signing a long term note payable for the balance. Paid wages of $2,700 for the period December 1 - 15. Received $180 as advance payment on storage rental. Deposited $4,700 of moving fees and $1,600 of storage fees. (Use one debit to cash) Paid the $6,600 dividend declared in 2015. Paid $860 for truck repairs incurred during the week. Deposited $6,260 of moving fees and $800 of storage fees. (Use one debit to cash) Paid accounts payable of $720. Paid wages of $2,850 for the period December 16 - 31. 24 26 28 30 31 C. Adjustments: a. Interest expense to accrue on the note payable is $24,700. b. Office supplies inventory was $180 on December 31. Moving supplies inventory was $4,530 on December 31. . Unexpired insurance was $9,475 as of December 31. Annual depreciation on the trucks was $50,350. f. Annual depreciation on the building was $7,400. g. Storage fees still owed as of December 31 were $650. h. Unpaid wages of $610 as of December 31 need to be recorded. i. Declared a $10,000 dividend to be paid in 2017. doudou e. Required: 1. Prepare and post the December transactions. 2. Prepare a 10-column worksheet and enter the December 31, unadjusted balances from the accounts. 3. Use the worksheet to determine the year-end adjustment amounts. 4. Complete the worksheet columns. 5. Prepare the financial statements for December 31, 2016. 6. Journal and post the adjusting entries. 7. Journal and post the closing entries. 8. Prepare the post closing trial balance for December 31, 2016
