Generat Joumal Prepsration of Adfusting Entries Finat Ouestion Adsosonal hutuction Net income would be oy 5 undentatedoverstasod Shart Of Accovents 136 Goir Carts 139 Accumulated Depreciation (Gol Carts) LAABILTES 211 Accounts Paysble 212 Notes Payable 213 inoome Tures Payable 214 Wages Payable 215 Utides Payable 216 Insurance Parable 217 interest Payable 218 Rent Payabio 219 Unearned Service Revenue 231 Bonds Payable 517. Repairs and Maintenance Experise 521 Wages Expense 531 intorest Expense 532 Depreciation Expense (Goir Carts) 533 Othet Expense 534 income Taxos Expense. Equrry a11 Common 5sock 321. Rotained Earnhgs 331 Dividends Preparation of Adjusting Entries \begin{tabular}{|l|l|l|l|l|} \hline Inatructions & Chat of Accounts \\ \hline \end{tabular} Goneral Journal Final cigation General Joumal 1. Arpove adfating entries at lanuay ar. Pofer to the Chart of Accounts for the exact wording of the account bites. CNow yournals da not use lines for joumal explanotions. Every line on a journal page is used for debit or credit entries. CNOW joumals wal automabically indent a credit enty when a credit amount is entered. Chant of Accounts. CHART OF ACCOUNTS West Beach Resort General Ledger ASSETS 111 Cash 121 Accounts Recolvable 122 Notes Recolvable 123 Supplies 124 Prepaid Insurance 125 Prepaid Rent 126 Inventory 131 Land 132 Buildings 133 Equipment 134 Furniture 135 Trucks 136 Golf Carts REVENUE 411 Sales Revenue 412 Service Revenue 413 Interest Income 414 Rent Revenue EXPENSES 511 Cost of Goods Sold 512 Advertising Expense 513 Supplies Expense 514 Utilities Expense 515 Rent Expense 516 Insurance Expense 517 Repairs and Maintenance Expense West Beach Resort operates a resort complex that specializes in hosting smal business and professional meetings. West Beach closes its fiscal year on Januar 31, a time when at has few meetings under way. Al January 31 , the following data are available: a. A training meoting is under way for 14 individuals from Fashion Design. Fashion Design paid $4,200 in advance for each person attending the 10-day training session. The meeting began on January 28 and wia end on Fobruary 6. b. Twenty-four people from Northem Publishing are attending a sales meeting. The daily fee for each person attending the meeting is \$za0 (charged for each night a person stays at the resort). The meeting began on January 29 , and guests will depart on February 2 Northern will be billed at the end of the meeting. c. Depreciation on the golf carts used to transport the guests' luggage to and from their rooms is $11,750 for the year. West Beach records depreciation yearly. d. At January 31, Friedrich Catering is owed $1,020 for food provided for guests through that date. This amount is unrecorded. West Beach classifies the cost of food as an "other expense" on the income statement. e. An examination indicates that the cost of office supplies on hand at January 31 is \$194, During the year, $800 of otfice supplies was purchased from Supply Depot. The cost of supplies purchased was debited to Office Supplies Invertory. No office supplies wore on hand at the beginning of the year. Required: 1. Prepare adjusting entries at January 31 for each of these tiems. 2. Conceptual Connoction: By how much wovid net income be overstated or understated if the accountant favled to make the adjusting entries
