Question
Preparing Adjusting Entries, Trial Balances, Financial Statements, and Closing Entries The unadjusted trial balance for Brown Inc. follows. Brown Inc. Unadjusted Trial Balance December 31,
Preparing Adjusting Entries, Trial Balances, Financial Statements, and Closing Entries
The unadjusted trial balance for Brown Inc. follows.
Brown Inc. Unadjusted Trial Balance December 31, 2020 | ||
---|---|---|
Description | Debit | Credit |
Cash | 6,320 | 0 |
Accounts receivable | 6,000 | |
Prepaid lease expense | 19,200 | |
Supplies | 11,000 | |
Equipment | 20,000 | |
Accumulated depreciationequipment | 3,000 | |
Accounts payable | 2,000 | |
Note payable | 8,000 | |
Common stock | 20,000 | |
Retained earnings | 8,000 | |
Dividends | 10,000 | |
Service revenue | 50,000 | |
Interest expense | 480 | |
Salaries expense | 13,000 | |
Utility expense | 2,000 | |
Miscellaneous expense | 3,000 | 0 |
Total | $91,000 | $91,000 |
Additional information for accounting adjustments 1. Brown was required to pay the entire rental for a one-year lease beginning July 1 for $13,200 cash. Brown recorded the payment as a debit to Prepaid Lease Expense. 2. A year-end count revealed $2,000 of supplies still available. 3. Annual depreciation expense on the equipment is $1,000. 4. Unpaid and unrecorded salaries is $2,000 at year-end. 5. The note payable calls for annual interest of 8%, payable each September 30. The principal amount of the note is not due for several years.
- Adjusting Journal Entries
- Adjusted Trial Balance
- Financial Statements
- Closing Journal Entries
Prepare the adjusted trial balance.
Brown Custom Publishing | ||
---|---|---|
Adjusted Trial Balance | ||
December 31, 2020 | ||
Description | Debit | Credit |
Cash | Answer | Answer |
Accounts receivable | Answer | Answer |
Prepaid lease expense | Answer | Answer |
Supplies | Answer | Answer |
Equipment | Answer | Answer |
Accumulated depreciationequipment | Answer | Answer |
Accounts payable | Answer | Answer |
Salaries payable | Answer | Answer |
Interest payable | Answer | Answer |
Note payable | Answer | Answer |
Common stock | Answer | Answer |
Retained earnings | Answer | Answer |
Dividends | Answer | Answer |
Service revenue | Answer | Answer |
Lease expense | Answer | Answer |
Depreciation expense | Answer | Answer |
Supplies expense | Answer | Answer |
Interest expense | Answer | Answer |
Salaries expense | Answer | Answer |
Utility expense | Answer | Answer |
Miscellaneous expense | Answer | Answer |
Totals | Answer | Answer |
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