Question
Following is the unadjusted trial balance of Baltimore Rentals Corporation at the end of its first year of operations, December 31, 20X5: Account Debit Credit
Following is the unadjusted trial balance of Baltimore Rentals Corporation at the end of its first year of operations, December 31, 20X5:
Account | Debit | Credit |
Cash | 3,300 | |
Accounts receivable | 4,000 | |
Supplies | 500 | |
Truck | 8,000 | |
Acc. dep. truck | 0 | |
Accounts payable | 5,000 | |
Unearned rent revenue | 2,400 | |
Income taxes payable | 0 | |
Capital Stock | 7,000 | |
Dividends | 1,000 | |
Rent earned | 16,000 | |
Commissions expense | 1,000 | |
Depreciation expense-truck | 0 | |
Supplies expense | 0 | |
Salaries expense | 7,000 | |
Telephone expense | 0 | |
Income tax expense | 0 | |
Rent expense | 5,600 | |
30,400 | 30,400 |
The following additional information is available:
A physical count indicates that $300 of supplies is still on hand at December 31.
The truck was purchased on July 1; it has an estimated useful life of 4 years.
One day of salaries for December 31 is unpaid; the unpaid amount of $200 will be included in the first Friday payment in January.
The balance in the Unearned Rent Revenue account represents six months rental of warehouse space, effective October 1.
A $100 bill for December telephone charges has not yet been recorded.
Income taxes expense for the year is $300. This amount will be paid in the next fiscal year.
Required:
Prepare all necessary adjusting entries at December 31, 20x5, including general ledger account numbers. Descriptions are not needed.
Using a worksheet template, prepare an adjusted trial balance at December 31, 20x5.
Using a worksheet template, prepare an income statement, statement of retained earnings, and a balance sheet.
Prepare closing entries including descriptions.
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