The following unadjusted trial balance is for Wrights Wrecking Ball Company as of December 31st, 2019. The December 31st 2018 balance in the owners capital account was $50,000, and the owner invested $40,000 cash in the company during 2019.
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 companys 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.
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.
2. Prepare an income statement (10 points) and classified balance sheet (15 points) in good form for the year ended December 31st, 2019.
The following unudjusted trial balance is for Wright's Wrecking Ball Company as of December 319,2019, 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 Cash $10,000 Supplies 15,000 Prepaid insurance 14,000 Equipment 150,000 Accum. Dep. - Equipment $10,000 Accounts puyable 4,650 Interest payable 0 0 Rent payable 0 Wages payable 0 Property taxes payable 0 Utilities payable 0 Long-term notes payable 30,000 Owner's Capital 90,000 Withdrawals 10,000 Fees earned 136,000 Depreciation expense - Equip. 0 0 Wages expense 40.000 Interest expense 1,650 Insurance expense 0 Rent expense 12,000 Supplies expense 0 Property taxes expense 9,000 Repuirs expense 4,000 Utilities expense 5,000 Totals S270,650 $270,650 1. Using the spreadsbext below, develop three 2019 trial bulances 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, h. 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 c. The company's employees have earned $3,000 of accred wages by the end of December. f. Rent expense of S2,000 has been incurred, but not yet paid or recorded by year end. 2. 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 Interes puyable 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 Sucs Prepaid insurance Equipment Accum. Dep. - Fquipment Accounts payable Interest payable Rent payable Wages payable Property taxes payable Utilities payable Long-term moles payable Owner's Capital Withdrawals Fees camned Depreciation expense Equip Wages expense Interest expense Insurance expense Rent expense Supplies expense Property taxes expense Repuirs expense Utilities expense Totals 14,000 150,000 $10,000 4.650 0 0 0 0 0 30.000 90.000 10,000 136.000 0 40,000 1,650 0 12,000 0 9,000 4,000 5,000 $270,650 S270.650 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 unucijusted 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. 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 bus not been recorded or paid. Account Unadjusted Trial Balance Debit Credit Adjusted Trial Balance Debit Credit Post-Closing Trial Balance Dcbit Credit Cash Supplies Prepaid Insurance Equipment Accum. Dep. - Fquip. Accounts payable Interest payable Rent payable Wages payable Property taxes puy Utilities payable Long-term moles pay Owner's Capital Withdrawals Fees carned Dep. expense - Equip Wages expense Interest expense Insurance expense Rent expense Supplies expense Property taxes exp. Repairs exp. Utilities expense Totus 2. Prepare an income statement (10 points) and classified balance sheet (15 points) in good form for the year ended December 31, 2019 Page 1 of 3
