- Prepare an Adjusted Trial Balance. If done right I will rate! Thank you for your help! Im completly lost.
December Transactions: Dec. 1 Amber Kim, Owner contributed land on the river (worth $85,000) and a small building to use as a rental office (worth $35,000) in exchange for capital. (First transaction has been done for you - see Journal Entries and T-Accounts) 1 Prepaid $3,000 for three months' rent on the warehouse where the company stores the kayaks. 2 Purchased kayaks signing a note payable for $7,200 4 Purchased office supplies on account for $500. 9 Received $4,700 cash for kayak rentals to customers. 15 Rented kayaks to customers for $3,500, but will be paid next month. 16 Received a $850 deposit from a kayak rental group that will use the kayaks next month. 18 Paid the utilities ($150) and telephone bills ($175) from last month. 19 Paid various accounts payable, $2,000. 20 Received bills for the telephone ($250) and utilities ($300) which will be paid later. 30 Paid wages of $1,800. 31 Amber Kim withdrew cash of $400 from the business. Adjusting Entries (see Chapter 3 for examples of adjusting entries) At December 31, the business gathers the following information for the adjusting entries: a. Office supplies on hand, $200 b. Rent of one month has been used. (Hint: see Chapter 3 for adjusting for prepaids) c. Determine the depreciation on the building using straight-line depreciation. Assume the useful life of the building is five years and the residual value is $5,000. (Hint: The building was purchased on December 1.) d. $400 of unearned revenue has now been earned. e. The employee who has been working the rental booth has earned $1,250 in wages that will be paid January 15, 2021. f. Kim Kayaks has earned $1,850 of kayak rental revenue that has not been recorded or received g. Determine the depreciation on the kayaks purchased on November 3 using straight-line depreciation. Assume the useful life of the kayaks is 4 years and the residual value is $0. h. Determine the depreciation on the kayaks purchased on December 2 using straight-line depreciation. Assume the useful life of the kayaks is 4 years and the residual value is $0. i. Interest expense accrued on the notes payable, $50. 1 N 3 3 4 6 5 6 02 9 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 KIM KAYAK COMPANY Adjusted Trial Balance December 31, 2020 Account Title Balance Debit Credit Cash Accounts Receivable Office Supplies Prepaid Rent Land 85,000 Building 35,000 Accumulated Depreciation - Building Kayaks Accumulated Depreciation - Kayaks Accounts Payable Utilities Payable Wages Payable Telephone Payable Unearned Revenue Interest Payable Notes Payable Kim, Capital Kim, Withdrawals Service Revenue (Kayak Rental Revenue) Rent Expense Utilities Expense Wages Expense Telephone Expense Interest Expense Office Supplies Expense Depreciation Expense - Kayaks Depreciation Expense - Buildings *Your amounts on this Adjusted Trial Balance come from your T- Account totals after posting your Adjusting Journal Entries
