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here is the attachment of adjustment LUZON COMPANY Trial Balance For the month Ended March, 2020 Credit Debit $ 40,000 20,000 5,000 5,100 2,400 60,000
here is the attachment of adjustment
LUZON COMPANY Trial Balance For the month Ended March, 2020 Credit Debit $ 40,000 20,000 5,000 5,100 2,400 60,000 Cash Accounts Receivable Supplies Prepaid rent Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Notes Payable Share Capital-Ordinary Dividends Service Revenue Salaries and Wages Expense Utilities Expense Rent Expense 25,000 10,000 20,000 54,000 1,500 55,000 15,000 5,000 10,000 164,000 164,000 a. Prepare the adjusting entries on March 31, 2020. (60 points) b. For each of them indicate which type belongs to (prepaid expenses, unearned revenues, accrued expenses or accrued revenues) (20 points) Solution GENERAL JOURNAL DATE ACCOUNT TITLES DEBIT CREDIT March 31 March 31 March 31 March 31 March 31 March 31 b. Transaction # TYPE of adjusting entry 1 2 3 4 5 6 Answer: Adjustment Entries S.no Account Tittle 1 Supplies Expenses A/c Supplies A/C Credit Debit 4,000 $ $ 4,000 2 $ $ 200 Insurance Expenses A/C Prepaid Insurance A/C $ 200 3 $ 1,700 Rent Expenses A/C Prepaid Rent A/C $ 1,700 4 $ 3,000 Depreciation Expenses A/C Accumulated Depreciation A/C-Equipment $ 3,000 5 $ 10,000 Service Revenue A/C Unearned revenue A/c $ 10,000 6 $ 6,000 Salaries and Wages Expenses A/C Salaries and wages payable A/c $ 6,000 LUZON COMPANY Adjusted Trail balance For the Month Ended March 30,2020 Partculars Debit Credit Cash $ 40,000 Account Receivables $ 20,000 Supplies $ 1,000 Prepaid Rent $ 3,400 Prepaid Insurance $ 2,200 Equipment $ 60,000 Accumulated Depreciation - Equipment $ 3,000 Accounts Payable $ 25,000 Notes payable $ 20,000 Salaries and Wages payable $ 6,000 Share Capital - Ordinary $ 54,000 Dividends $ 1,500 Service Revenue $ 65,000 Salaries and Wages expenses $ 15,000 Utilities Expenses $ 5,000 Rent expenses $ 11,700 Insurance Expenses $ 200 Depreciation Expenses $ 3,000 Supplies Expenses $ 10,000 Total $ 1,73,000 $1,73,000Step by Step Solution
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