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Making The Connection: Integrative Exercise (Chapters 1-3) esgin with the following account balances for University Street Parking Garage (assume all accounts harve normal Accounts payable
Making The Connection: Integrative Exercise (Chapters 1-3) esgin with the following account balances for University Street Parking Garage (assume all accounts harve normal Accounts payable Accounts receivable Accumulated depreciation (equipment) S 16,700 39,200 36,800 Cash 6,700 Common stock (20,000 shares) Depreciation expense (equipment) Dividends 100,000 12,300 6,300 Equipment 269,500 Income taxes expense Income taxes payable Interest expense 2,700 1,100 16,500 balances) at Dece3ere st mber 31, 2019. Interest payable Interest income 4,100 Inventory 4,900 Investments 35,000 160,000 Notes payable (due May 2, 2025) Prepaid rent (4 months) Rent expense Retained earnings, 12/31/2018 Service revenue, parking Service revenue, repair Supplies expense Wages expense Wages payable 36,400 94,400 43,000 224,600 208,100 36,900 233,600 0 Required: 1. For the following transactions, provide the necessary adjusting entries and update the account balances to appropriately reflect these adjusting entries 1. University Street Parking rents space that requires a rental payment of $9,100 per month. University Street Parking has prepaid rent through March 31, 2020. 2. At December 31, 2019, University Street Parking owes employees wages of $12,500. 3. University Street Parking should have total depreciation expense on equipment for 2019 of $14,300. 4. The note payable of $160,000 has an interest rate of 6.75%. University Street Parking has paid interest through October 31, 2019. 2. Prepare a properfy classified income statement for 2019, retained eamings statement for 2019, and a property classified balance sheet as of December 31, 2019, using the post-adjustment account balances
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