Sutton Pond Apartments Inc.'s unadjusted and adjusted trial balance at April 30, 2020, follow:
Requirements:
1. Make the adjusting entries that account for the differences between the two trial balances.
2. Compute Sutton Pond Apartment Inc.'s total assets, total liabilities, total equity, and net income. Prove your answer with the accounting equation.
$ Sutton Pond Apartments Inc. Adjusted Trial Balance April 30, 2020 Trial Balance Adjusted Trial Balance Account Title Debit Credit Debit Credit Cash $ 8,200 $ 8,200 Accounts receivable 6,400 7,100 Interest receivable 600 Note receivable 3,900 3,900 Supplies 950 700 Prepaid insurance 2,600 1,000 Building 66,300 66,300 Accumulated depreciation 16,100 $ 18,300 Accounts payable 6,500 6,500 Wages payable 100 Unearned rental revenue 1,200 900 Share capital 18,200 18,200 Retained earnings 42,300 42,300 Dividends 3,480 3,480 Rental revenue 9,800 10,800 Interest revenue 600 Wages expense 1,700 1.800 Insurance expense 1,600 Depreciation expense 2.200 Property tax expenso 330 330 Supplies expense 250 240 240 Utilities expense 94,100 $ 94,100 $ Total 97.700 97,700 $ $ Requirement 1. Make the adjusting entries that account for the differences between the two trial balances. The first difference occurs in the Accounts Receivable account. Record the adjustment to Accounts Receivable and the related account. (Record debits first, then credits. Enter explanations on the last line.) Date Accounts Debit Credit April 30 The second difference occurs in the Interest Receivable account. Record the adjustment to Interest Receivable and the related account. Date Accounts Debit Credit April 30 The third difference occurs in the Supplies account. Record the adjustment to Supplies and the related account. Date Accounts Debit Credit April 30 The fourth difference occurs in the Prepaid Insurance account. Record the adjustment to Prepaid Insurance and the related account Date Accounts Debit Credit April 30 The fifth difference occurs in the Accumulated Depreciation account. Record the adjustment to Accumulated Depreciation and the related account. Date Accounts Debit Credit April 30 The sixth difference occurs in the Wages Payable account. Record the adjustment to Wages Payable and the related account. Date Accounts Debit Credit April 30 The seventh difference occurs in the Unearned Rental Revenue account. Record the adjustment to Unearned Rental Revenue and the related account. Date Accounts Debit Credit April 30 Requirement 2. Compute Sutton Pond Apartments Inc.'s total assets, total liabilities, total equity, and net income. Prove your answer with the accounting equation. Use the adjusted trial balance provided to compute Sutton Pond's total assets, total liabilities, total equity, and net income. Total Assets. Total Liabilities... Total Shareholders' Equity. Net Income. To prove your answer, use the accounting equation of Assets = Liabilities + Shareholders' Equity. Complete the equation to prove your answer. Total Assets Total Liabilities + Total Shareholder's Equity
