Question
Required information [The following information applies to the questions displayed below.] North Star prepared the following unadjusted trial balance at the end of its second
Required information
[The following information applies to the questions displayed below.]
North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.
Account Titles | Debit | Credit | |||||
Cash | $ | 11,700 | |||||
Accounts Receivable | 5,700 | ||||||
Prepaid Rent | 2,340 | ||||||
Equipment | 20,700 | ||||||
Accumulated Depreciation | $ | 1,130 | |||||
Accounts Payable | 1,130 | ||||||
Income Tax Payable | 0 | ||||||
Common Stock | 24,500 | ||||||
Retained Earnings | 1,800 | ||||||
Sales Revenue | 48,780 | ||||||
Salaries and Wages Expense | 24,700 | ||||||
Utilities Expense | 12,200 | ||||||
Rent Expense | 0 | ||||||
Depreciation Expense | 0 | ||||||
Income Tax Expense | 0 | ||||||
Totals | $ | 77,340 | $ | 77,340 | |||
Other data not yet recorded at December 31:
Rent expired during the year, $1,170.
Depreciation expense for the year, $1,130.
Utilities used and unpaid, $8,700.
Income tax expense, $360.
T Accounts
Adjusted TB
Summarize the adjusting journal entries in T-accounts. After entering the beginning balances and computing the adjusted ending balances.
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NORTH STARAdjusted Trial BalanceAs of December 31Account TitlesDebitCreditCash$11,700Accounts Receivable5,700Prepaid Rent1,170Equipment20,700Accumulated Depreciation2,260Accounts Payable9,830Income Tax Payable360Common Stock24,500Retained Earnings1,800Sales Revenue48,780Salaries and Wages Expense24,700Utilities Expense20,900Rent Expense1,170Depreciation Expense1,130Income Tax Expense360Totals$87,530$87,530
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