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The following selected accounts appeared in the unadjusted trial balance of Hawthorne Industries: - Accounts Receivable $176,000 Prepaid Rent 69,000 Prepaid Insurance 36,000 Equipment 280,000

  1. The following selected accounts appeared in the unadjusted trial balance of Hawthorne Industries: -

Accounts Receivable

$176,000

Prepaid Rent

69,000

Prepaid Insurance

36,000

Equipment

280,000

Accumulated depreciation - equipment

30,000

Unearned Service Revenue

24,000

Salary Expense

130,000

Additional data:

  1. One-half of the revenue received in advance has been earned by December 31, 2019
  2. The prepaid insurance represents three years premium on a policy providing coverage starting September 1, 2019
  3. Since the last payday, employees have earned an additional $2,500 which has not yet been paid or recorded
  4. The equipment has an estimated life of 10 years and no expected value at the end of its life
  5. Services performed but unbilled and uncollected at year end amounted to $6,500
  6. The prepaid rent relates to one-half of the year beginning on October 1, 2019

Prepare the necessary year-end adjusting entries as of December 31, 2019.

  1. The unadjusted trial balance and information regarding adjusting entries for Beckys Carpets, Inc., is given below. Prepare the financial statements for Beckys Carpet Inc., after making the necessary adjustments

Beckys Carpets, Inc.,

Unadjusted Trial Balance

December 31, 2019

Accounts

Debit

Credit

25,500

Accounts receivable

15,000

Supplies

4,500

Prepaid Insurance

5,000

Equipment

89,000

Accumulated depreciation - Equipment

6,000

Accounts payable

1,800

Unearned service revenue

3,700

Common stock

93,200

Retained earnings

21,000

Service revenue

30,700

Salary expense

15,700

Advertising expense

1,700

156,400

156,400

Adjusting entry information:

  1. Salaries earned but unpaid at the end of the year, $1,500
  2. Insurance expired, 700
  3. Depreciation expense, 800
  4. Unearned service revenue earned during the year, $1,500
  5. The inventory of supplies at year end was $3,400

  1. Galarus company had the following trial balance as of December 31, 2019

Galarus Company

Trial Balance

December 31, 2019

Accounts

Debit

Credit

10,600

Accounts receivable

13,200

Supplies

2,400

Prepaid Insurance

1,500

Equipment

38,500

Accumulated depreciation - Equipment

8,300

Accounts payable

2,500

Unearned service revenue

8,900

Common stock

15,000

Retained earnings

10,100

Service revenue

35,000

Salary expense

11,200

Advertising expense

2,400

79,800

79,800

Additional information:

  1. Supplies used during the month, $450
  2. Prepaid insurance expired during the month, $300
  3. Depreciation on equipment for the month, $550
  4. Unearned service revenue earned during the month, $2,200
  5. Accrued salary expense at the end of the month, $650

Based on the trial balance and the additional data, prepare financial statements for the year ended December 31, 2019

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