Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following is the November 30, 2020 unadjusted trial balance of Zenith Delivery Company, Inc. The account balances represent the results of entries recorded during the

image text in transcribed
image text in transcribed
Following is the November 30, 2020 unadjusted trial balance of Zenith Delivery Company, Inc. The account balances represent the results of entries recorded during the first 11 months of 2020. There have been no stock transactions during the year. Zenith Delivery Company, Inc. Unadjusted Trial Balance November 30, 2020 ACCT# DEBITS CREDITS 101 125 126 127 128 150 151 201 202 s 69.660 4.600 730 1.200 6,500 295.000 $15.000 1.300 205 213 230 301 Cash Accounts Receivable Office Supplies Prepaid Rent Prepaid Insurance Trucks Accumulated Depreciation Trucks Accounts Payable Interest Payable Wages Payable Unearned Delivery Fees Long-Term Notes Payable Common Stock No-Par Retained Famnings Dividends Delivery Fees Earned Depreciation Expense, Trucks Wages Expense Interest Expense Rent Expanse Insurance Expense Office Supplies Expense Advertising Expense Truck Repair Gas Eupense General and Administrative Expense Income Summary 0 1.600 128.000 20.000 42.000 3021 15.000 180.000 0 38.800 390 401 510 520 521 522 523 524 525 526 527 901 0 ol 0 4.800 38.940 14,670 $ 487900$ 487.900 The following transactions occurred during the month of December 2020: Dec. 03 5 6 Paid accounts payable of $350. Paid insurance premiums of $9,200 in advance (use permanent account). Received $90 as advance payment of delivery service (use permanent account) Billed and collected $6,320 in cash from delivery fees. 9 2 10 11 15 16 17 21 28 29 31 Purchased $920 of office supplies on account. Acquired a truck worth $42,000 by paying $7,400 in cash and giving a long-term note payable for the balance. Paid wages of $2,200 for the period December 1-15. Collected $2,450 of accounts receivable. Paid S1,460 cash for repairs to trucks. Paid $1,700 cash for advertising on a local television station. Paid wages of $1,800 for the period December 16-28 Billed and collected $3,900 in cash delivery fees. Declared and paid dividends in the amount of $1,200. REQUIRED 1. Enter the November 30, 2020 account balances into the general ledger accounts. 2. Prepare and post journal entries to record the December transactions previously listed. Entries should be in full format (refer to Illustration 3.8 in Kieso). Use the Excel templates provided for the General Journal and Ledger 3. Prepare a 10-columin worksheet (a template is provided) and enter the December 31 unadjusted balances from the general ledger (refer to Appendix 3C in Kieso). Prepare and post adjusting entries for the following items, and complete the worksheet: a. Unpaid wages were $420 as of December 31. b. The December 31 office supplies inventory was $80. c. The unexpired portion of the prepaid rent was $600 as of December 31. d. The unexpired portion of the prepaid insurance was $4,070 as of December 31. c. Depreciation for the year on the trucks was $27,440. f. Unearned delivery fees balance at December 31 was $375. 8. Interest Expense on the notes payable for 2020 was $31,000, payable February 1, 2021 1 4. Prepare a single-step income statement and a statement of changes in retained earnings for the year, and a classified balance sheet as of December 31, 2020 in proper format. Assume that Zenith had 10,000 common shares outstanding in 2020. Attach these pages to your assignment. S. Journalize and post the closing entries. Prepare a post-closing trial balance on a separate page. 6. Uday Chandra 3 Following is the November 30, 2020 unadjusted trial balance of Zenith Delivery Company, Inc. The account balances represent the results of entries recorded during the first 11 months of 2020. There have been no stock transactions during the year. Zenith Delivery Company, Inc. Unadjusted Trial Balance November 30, 2020 ACCT# DEBITS CREDITS 101 125 126 127 128 150 151 201 202 s 69.660 4.600 730 1.200 6,500 295.000 $15.000 1.300 205 213 230 301 Cash Accounts Receivable Office Supplies Prepaid Rent Prepaid Insurance Trucks Accumulated Depreciation Trucks Accounts Payable Interest Payable Wages Payable Unearned Delivery Fees Long-Term Notes Payable Common Stock No-Par Retained Famnings Dividends Delivery Fees Earned Depreciation Expense, Trucks Wages Expense Interest Expense Rent Expanse Insurance Expense Office Supplies Expense Advertising Expense Truck Repair Gas Eupense General and Administrative Expense Income Summary 0 1.600 128.000 20.000 42.000 3021 15.000 180.000 0 38.800 390 401 510 520 521 522 523 524 525 526 527 901 0 ol 0 4.800 38.940 14,670 $ 487900$ 487.900 The following transactions occurred during the month of December 2020: Dec. 03 5 6 Paid accounts payable of $350. Paid insurance premiums of $9,200 in advance (use permanent account). Received $90 as advance payment of delivery service (use permanent account) Billed and collected $6,320 in cash from delivery fees. 9 2 10 11 15 16 17 21 28 29 31 Purchased $920 of office supplies on account. Acquired a truck worth $42,000 by paying $7,400 in cash and giving a long-term note payable for the balance. Paid wages of $2,200 for the period December 1-15. Collected $2,450 of accounts receivable. Paid S1,460 cash for repairs to trucks. Paid $1,700 cash for advertising on a local television station. Paid wages of $1,800 for the period December 16-28 Billed and collected $3,900 in cash delivery fees. Declared and paid dividends in the amount of $1,200. REQUIRED 1. Enter the November 30, 2020 account balances into the general ledger accounts. 2. Prepare and post journal entries to record the December transactions previously listed. Entries should be in full format (refer to Illustration 3.8 in Kieso). Use the Excel templates provided for the General Journal and Ledger 3. Prepare a 10-columin worksheet (a template is provided) and enter the December 31 unadjusted balances from the general ledger (refer to Appendix 3C in Kieso). Prepare and post adjusting entries for the following items, and complete the worksheet: a. Unpaid wages were $420 as of December 31. b. The December 31 office supplies inventory was $80. c. The unexpired portion of the prepaid rent was $600 as of December 31. d. The unexpired portion of the prepaid insurance was $4,070 as of December 31. c. Depreciation for the year on the trucks was $27,440. f. Unearned delivery fees balance at December 31 was $375. 8. Interest Expense on the notes payable for 2020 was $31,000, payable February 1, 2021 1 4. Prepare a single-step income statement and a statement of changes in retained earnings for the year, and a classified balance sheet as of December 31, 2020 in proper format. Assume that Zenith had 10,000 common shares outstanding in 2020. Attach these pages to your assignment. S. Journalize and post the closing entries. Prepare a post-closing trial balance on a separate page. 6. Uday Chandra 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Energy Audits

Authors: Albert Thumann, Terry Niehus, William J. Younger

9th Edition

1466561629, 978-1466561625

More Books

Students also viewed these Accounting questions