Question
The given trial balance of Badger Ranch Company pertains to December 31, 2016, which is the end of its year-long accounting period. Data needed for
The given trial balance of Badger Ranch Company pertains to December 31, 2016, which is the end of its year-long accounting period. Data needed for the adjusting entries include:
a. Supplies on hand at year-end, $3,000.
b. Depreciation on furniture and fixtures, $40,000.
c. Depreciation on building, $25,000.
d. Salaries owed but not yet paid, $4,000.
e. Accrued service revenue, $18,000.
f. Of the $45,000 balance of unearned service revenue, $32,000 was earned during the year.
g. Accrued income tax expense, $30,000.
| Badger Ranch Company Trial Balance December 31, 2016 | DEBIT ($) | CREDIT ($) |
1 | Cash | 198,000 |
|
2 | Accounts receivable | 370,000 |
|
3 | Supplies | 6,000 |
|
4 | Building | 250,000 |
|
5 | Accumulated depreciationbuilding |
| 130,000 |
6 | Furniture and fixtures | 100,000 |
|
7 | Accumulated depreciationfurniture and fixtures |
| 40,000 |
8 | Accounts payable |
| 380,000 |
9 | Salary payable |
|
|
10 | Unearned service revenue |
| 45,000 |
11 | Income tax payable |
|
|
12 | Common stock |
| 100,000 |
13 | Retained earnings |
| 193,000 |
14 | Dividends | 65,000 |
|
15 | Service revenue |
| 286,000 |
16 | Salary expense | 172,000 |
|
17 | Supplies expense |
|
|
18 | Depreciation expensebuilding |
|
|
19 | Depreciation expensefurniture and fixtures |
|
|
20 | Income tax expense |
|
|
21 | Miscellaneous expense | 13,000 |
|
22 | TOTAL | 1,174,000 | 1,174,000 |
Requirements
1. Prepare a worksheet for the adjusted trial balance.
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