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Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; Optional End-of-Period Spreadsheet The unadjusted trial balance of Recessive Interiors at January 31, 20Y2, the end

Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; Optional End-of-Period Spreadsheet

The unadjusted trial balance of Recessive Interiors at January 31, 20Y2, the end of the year, follows:

Recessive Interiors Unadjusted Trial Balance January 31, 20Y2
Account No. Debit Balances Credit Balances
Cash 11 13,100
Supplies 13 8,000
Prepaid Insurance 14 7,500
Equipment 16 113,000
Accumulated DepreciationEquipment 17 12,000
Trucks 18 90,000
Accumulated DepreciationTrucks 19 27,100
Accounts Payable 21 4,500
Common Stock 31 30,000
Retained Earnings 32 96,400
Dividends 33 3,000
Service Revenue 41 155,000
Wages Expense 51 72,000
Rent Expense 52 7,600
Truck Expense 53 5,350
Miscellaneous Expense 59 5,450
325,000 325,000

The following additional accounts from Recessive Interiors' chart of accounts should be used: Wages Payable, 22; Depreciation Expense-Equipment, 54; Supplies Expense, 55; Depreciation Expense-Trucks, 56; Insurance Expense, 57.

The data needed to determine year-end adjustments are as follows:

  1. Supplies on hand at January 31 are $2,850.
  2. Insurance premiums expired during the year are $3,150.
  3. Depreciation of equipment during the year is $5,250.
  4. Depreciation of trucks during the year is $4,000.
  5. Wages accrued but not paid at January 31 are $900.

Use the attached spreadsheet to complete parts 2, 3, and 6. Click on the Spreadsheet icon above to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

Required:

1. For each account listed in the unadjusted trial balance, notice that the balance has been entered in the appropriate general ledger account balance column in the spreadsheet. Posting to the general ledger will take place in step 3 and step 6.

2. (Optional) In the attached spreadsheet, enter the adjusting entries and complete the worksheet.

3. Journalize the adjusting entries on page 26 of the journal. Then post to the appropriate accounts in the general ledger in the attached spreadsheet, inserting balances in the accounts affected. If an amount box does not require an entry, leave it blank.

Journal PAGE 26
Date Account Post. Ref. Debit Credit
20Y2
a. Jan. 31
b. Jan. 31
c. Jan. 31
d. Jan. 31
e. Jan. 31

4. Prepare an adjusted trial balance. List the accounts in order by type: Assets, Liabilities, Capital, Dividends, Revenue and Expenses. If an amount box does not require an entry, leave it blank.

Recessive Interiors Adjusted Trial Balance January 31, 20Y2
Debit Balances Credit Balances

5. Prepare an income statement.

Recessive Interiors Income Statement For the Year Ended January 31, 20Y2
$
Expenses:
$
Total expenses
$

Prepare a statement of stockholders equity. During the year ended January 31, 20Y2, additional common stock of $7,500 was issued. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.

Recessive Interiors Statement of Stockholders Equity For the Year Ended January 31, 20Y2
Common Stock Retained Earnings Total
$ $ $
$ $ $

Prepare a balance sheet.

Recessive Interiors Balance Sheet January 31, 20Y2
Assets Liabilities
Current assets: Current liabilities:
$ $
Total liabilities $
Total current assets $
Property, plant, and equipment: Stockholders' Equity
$ $
$
$
Total property, plant, and equipment Total stockholders' equity
Total assets $ Total liabilities and stockholders' equity $

6. Journalize the closing entries on page 27 of the journal. Then post to the general ledger in the attached spreadsheet. If an amount box does not require an entry, leave it blank.

Journal PAGE 27
Date Account Post. Ref. Debit Credit
Jan. 31
Jan. 31

7. Prepare a post-closing trial balance. List the accounts in order by type: Assets, Liabilities, Capital, Dividends, Revenue and Expenses. If an amount box does not require an entry, leave it blank.

Recessive Interiors Post-Closing Trial Balance January 31, 20Y2
Debit Balances Credit Balances

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