Answered step by step
Verified Expert Solution
Question
1 Approved Answer
G H Trial Balance December 31, 20X3 Credits $- Debits $30,540 45,000 7,000 244,500 Cash Accounts receivable Supplies Equipment Accumulated depreciation Accounts payable Unearned revenue
G H Trial Balance December 31, 20X3 Credits $- Debits $30,540 45,000 7,000 244,500 Cash Accounts receivable Supplies Equipment Accumulated depreciation Accounts payable Unearned revenue Notes payable Capital stock Retained eamings, Jan. 1 Dividends Revenues Wages expense Utilities expense Selling expense Depreciation expense Interest expense 46,500 12,700 31,250 80,000 100,000 63,200 12,000 289,800 214,600 8,700 41,610 12,000 7,500 $623,450 $623,450 Delton discovered that 40% of the uneamed revenue appearing in the trial balance had actually been eamed as of the end of the year A physical count of supplies on hand revealed a yearend balance of only $3,000. Unpaid and unrecorded invoices for utilities for December amounted to $1,500. The last payday was December 26. Employees are owed an additional $3,900 that has not been recorded. Additional depreciation of $3,100 needs to be recorded. (a) Prepare joumal entries relating to the adjustments. (b) Prepare an adjusted trial balance (you might utilize a partial worksheet for this task, as shown in the downloadable form). (c) Prepare an income statement and statement of retained eamings for 20X3, and a classified balance sheet as of the end of the year. (d) Berry's bookkeeper argued with Delton that there was no need to record the adjustments since they have no "net" effect on income. Evaluate whether this observation is true of false, and comment on the appropriateness of this logic
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started