QUESTION 11 At the end of the 2021 year, the accounting staff at ABC Inc. (ABC) have the following unadjusted trial balance as at December 31, 2021. ABC Inc. December 31, 2021 Trial Balance Cash $ 27,200 Accounts Receivable 64,589 Supplies 4,080 Prepaid Insurance 4,300 Equipment 925,000 Accumulated Depreciation $ 178,950 Other Assets 32,500 Accounts Payable 34,589 Uneamed Service Revenue 15,275 21,000 Notes Payable (due 2026) Common Shares 40,000 Retained Earnings, 03/31/2021 246,555 Service Revenue 905,125 Wages Expense 205,125 Rent Expense 175,000 Interest Expense 3,700 Total $1,441,494 $1,441,494 The accounting staff have identified the following items where a year end accrual entry may be required. 80 points Save Answer The accounting staff have identified the following items where a year end accrual entry may be required. 1. PDF purchased 12-month insurance on July 1, 2021. It is reported as prepaid insurance in the trial balance above. 2. A physical inventory count showed that $690 of office supplies is on hand at year end. 3. PDF's equipment depreciation was $31,980 for the 2021 year. 4. An analysis showed the unearned service revenue above had been reduced to $12,420 after additional service was provided to customers prior to the end of year. 5. Wages in the amount of $3,800 were owed to employees but were unpaid and unrecorded at year-end. 6. Six months' interest at 6% on the note was paid on August 31. Interest for the period from September 1 to December 31 has not been paid or recorded. Required 1. Prepare all year end adjusting entries for ABC on the following page, dates and explanations are not required. 2. Prepare an adjusted trial balance for ABC Inc. Add any additional accounts that may be required. 3. From the Adjusted Trial Balance that you have prepared for ABC Inc. use this information to prepare the following 3 Financial Statements. a. Please prepare a statement of earnings for ABC Inc. for the year ended December 31, 2021. b. Please prepare a statement of retained earnings for ABC Inc. at December 31, 2021. c. Please prepare a statement of financial position for ABC Inc. as at December 31, 2021 QUESTION 11 At the end of the 2021 year, the accounting staff at ABC Inc. (ABC) have the following unadjusted trial balance as at December 31, 2021. ABC Inc. December 31, 2021 Trial Balance Cash $ 27,200 Accounts Receivable 64,589 Supplies 4,080 Prepaid Insurance 4,300 Equipment 925,000 Accumulated Depreciation $ 178,950 Other Assets 32,500 Accounts Payable 34,589 Uneamed Service Revenue 15,275 21,000 Notes Payable (due 2026) Common Shares 40,000 Retained Earnings, 03/31/2021 246,555 Service Revenue 905,125 Wages Expense 205,125 Rent Expense 175,000 Interest Expense 3,700 Total $1,441,494 $1,441,494 The accounting staff have identified the following items where a year end accrual entry may be required. 80 points Save Answer The accounting staff have identified the following items where a year end accrual entry may be required. 1. PDF purchased 12-month insurance on July 1, 2021. It is reported as prepaid insurance in the trial balance above. 2. A physical inventory count showed that $690 of office supplies is on hand at year end. 3. PDF's equipment depreciation was $31,980 for the 2021 year. 4. An analysis showed the unearned service revenue above had been reduced to $12,420 after additional service was provided to customers prior to the end of year. 5. Wages in the amount of $3,800 were owed to employees but were unpaid and unrecorded at year-end. 6. Six months' interest at 6% on the note was paid on August 31. Interest for the period from September 1 to December 31 has not been paid or recorded. Required 1. Prepare all year end adjusting entries for ABC on the following page, dates and explanations are not required. 2. Prepare an adjusted trial balance for ABC Inc. Add any additional accounts that may be required. 3. From the Adjusted Trial Balance that you have prepared for ABC Inc. use this information to prepare the following 3 Financial Statements. a. Please prepare a statement of earnings for ABC Inc. for the year ended December 31, 2021. b. Please prepare a statement of retained earnings for ABC Inc. at December 31, 2021. c. Please prepare a statement of financial position for ABC Inc. as at December 31, 2021
