Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Noah B Access Computing Adjusting entries Practice Problem Using the unadjusted Trial Balance from Access computing and the following information, prepare the necessary adjusting entries

image text in transcribed
image text in transcribed
image text in transcribed
Noah B Access Computing Adjusting entries Practice Problem Using the unadjusted Trial Balance from Access computing and the following information, prepare the necessary adjusting entries for Access Computing, Inc. at 12/31/2016. 1) The count of supplies on hand at 12/31/16 was $1,500. Please adjust the supplies account to actual. 2) The entire uneared revenue balance was eamed at 12/31/2016 3) Employees have earned 5 days wages at 12/31/2016. The wages will not be paid until 2017 Daily payroll is $100 per day 4) At 12/31/2016, $1200 of work had been completed but the customer will not pay us until 2017. 5) The computer equipment that was purchased on 12/1 for $15,000 has a 5 year useful life and a $3,000 salvage value. Record December (1 month) depreciation. 6) Adjust the prepaid Insurance account for the expired insurance. The insurance was originally purchased on 12/1/16 for $9,000. It was for an 18 month policy covering from 12/1/16- 5/31/18. Required: Record the adjusting entries for items 1-6 above. Post the adjusting entries to the accounts and get balances in the accounts. Prepare an adjusted trial balance Use the adjusted trial balance prepare the income statement, statement of retained earnings and Balance Sheet. . Access Computing, Inc. Unadjusted Trial Balance December 31, 2016 Credits Debits 171,000 20,000 4,000 9,000 15.000 0 Account title Cash Accounts Receivable Supplies Prepaid Insurance Computer Equipment Accumulated depreciation-comp. equi Accounts Payable Wages Payable Unearned Revenue Common Stock Retained Earnings Revenue Depreciation Expense Insurance Expense Supplies Expense Wages Expense 3.000 200,000 10,000 27,000 21,000 Totals 240,000 240,000 Name. Acceso Computing, ane. DR CR DR ER Bal 20,000 4 DRFOR Bagi mereka Cash 100) Accounts Recente Supplies (10) Prepaid Iolcha Computer. Special WY DR/ch Bol 190,000 DR CR (200) Accumulate Depression 8 Accounts Payable competips De CR Luegos Pamable ( (205) Del Unearned Record Commanho 300 ) 200,000 BC ) ( 6oo) Retaindeanings Renen Renegal too) Depuciations yonce 120,000 Bal 10,ooo Bal Supplies Expense (605) Insurance lippe. Wagen Expertens BeleR Bals 20,00 Income Summary 19 (900 ) DR CR a jak

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Managerial Accounting For Managers

Authors: Eric Noreen, Peter C. Brewer, Ray H. Garrison

5th Edition

1260570010, 9781260570014

More Books

Students also viewed these Accounting questions