Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following unadjusted trial balance is for Wright's Wrecking Ball Company as of December 31, 2019. The December 31 2018 balance in the owner's capital

image text in transcribed
image text in transcribed
The following unadjusted trial balance is for Wright's Wrecking Ball Company as of December 31", 2019. The December 31" 2018 balance in the owner's capital account was $50,000, and the owner invested $40,000 cash in the company during 2019. Debit Credit $ 10,000 15.000 14.000 150,000 $ 10,000 4,650 Cash Supplies Prepaid insurance Equipment Accum. Dep. - Equipment Accounts payable Interest payable Rent payable Wages payable Property taxes payable Utilities payable Long-term notes payable Owner's Capital Withdrawals Fees earned Depreciation expense - Equip Wages expense Interest expense Insurance expense Rent expense Supplies expense Property taxes expense Repairs expense Utilities expense Totals 30,000 90,000 10,000 136,000 40,000 1.650 12,000 9,000 4.000 5.000 $270,650 $270,650 1. Using the spreadsheet below, develop three 2019 trial balances for the company based on the following additional information: (25 points.) a. The supplies available at the end of 2019 had a cost of $6,000. b. The cost of expired (used) insurance for 2019 is $7,000. c. Annual depreciation on equipment is $5,000. d. The December utilities expense of $500 is not included in the unadjusted trial balance. e. The company's employees have earned $3,000 of accrued wages by the end of December. f. Rent expense of $2,000 has been incurred, but not yet paid or recorded by year end. f. Rent expense of $2,000 has been incurred, but not yet paid or recorded by year end. g. Property taxes of $500 have been assessed for 2019, but have not yet been paid or recorded. h. Accrued interest expense of $200 for December has not been recorded or paid. Account Unadjusted Trial Balance Debit Credit Adjusted Trial Balance Debit Credit Post-Closing Trial Balance Debit Credit Cash Supplies Prepaid Insurance Equipment Accum. Dep. - Equip Accounts payable Interest payable Rent payable Wages payable Property taxes pay. Utilities payable Long-term notes pay. Owner's Capital Withdrawals Fees earned Dep. expense - Equip Wages expense Interest expense Insurance expense Rent expense Supplies expense Property taxes exp. Repairs exp. Utilities expense Totals 2. Prepare an income statement (10 points) and classified balance sheet (15 points) in good form for the year ended December 31, 2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles A Business Perspective Financial Accounting Chapters 9 To 18

Authors: Bill Buxton, Amy Sibiga

1st Edition

1461160863, 978-1461160861

More Books

Students also viewed these Accounting questions

Question

how do i find the net income looking at the balance sheet

Answered: 1 week ago