Home Page Layout View Tell me what you will de AL C D 11 M N P PREPARE in proper form) ADIUSTING JOURNAL ENTRIES HERE A Information to prepare adjustintumul entries The following information relates to Gatsby, Inc. as of December of the current year. The company was the calendar year as its annual reporting period and the Accrual Method of Accounting Prepaid and unearned items are recorded as assets and liabilities, respectively. Prepare all necessary adjustin umat entries and post to the accounts A. The company's weekly payroll is $3,000 and is paid each Friday for a five-day work week. Assume December ist falls on a Wednesday, but the employees will not be paid their wapet until Friday, January and Account Db Credit A Il Eighteen months earlier, on July 1st the company purchased equipment that cost $160,000. its useful life in predicted to be twenty years, at which time the equipment is expected to have a zero salvago/esidual value. Gatsby, Inc uses the straight-line depreciation method. Deprecation has not been recorded for this year. C On September 1st of the current year Gatsby, Inc. was paid 4.000 in advance of future installation of alarm systems in C new homes. The amount was credited to the neared Revence Alarm count between September and December it alarm systems were installed in 2 homes, completing those jobs 0. D On October ist of the current year the company purchased a 12 month insurance policy for $2.000. The transaction was recorded with a debit to the Prepaid Insurance account Insurance expense has not been recorded for the quarter (October November, and December E On December of the current year the company completed an $38.000 job that has not been billed/involved and therefore has not been recorded. E A $150,000 larg term nate payable was signed on August 1st of the current year. It is a five year note with a 5 interest rate. Interest expense as not been accrued for this year. G. Supplies at the beginning of the current year had a balance of 500 Supplies valued at $4,000 were purchased thoughout the year. The current balance in the account is to H H. Depreciation on the building is calculated using the straight-line depreciation method. Gatsby estimates depreciation on the building over a 25 year period and a zero salvage/residual values > E33 D 1 Gatsby, Inc 2 Linadjusted Trial Balance 12/31/XX 4 Debit Credit 5 Cash 121.550 6 Accounts Receivable 236,000 7. Prepaid Insurance 24,000 & Supplies 4,500 9 Inventory 85,000 10 Land 75.000 11 Building 200,000 12 Accumlated Depreciation Building 40,000 13 Equipment 160,000 14 Accumlated Depreciation Equipment 3.000 15 Accounts Payable 160,500 16 Interest Payable 0 17 Wages Payable 0 18 Unearned Revenue - Alarm Systems 45.000 19 Long-Term Bank Note Payable 150,000 20 Common Stock 310,000 21 Retained Earnings 124,750 22 Dividends 7,000 23 Revenue 381.000 24 Cost of the Goods Sold 146,000 25 Depreciation Expense 0 26 Insurance Expense 15.000 27 interest Expense 0 28 Rent Expense 54.000 29 Supplies Expense O 30 Utilities Expense 23,300 31 Wage Expense 67.900 32 Totals $1212.29 $213.20 33 34 35 36 37 38 39 40 Project Instructions Unadjusted Trial Balance Adjusting - Ready B 4
