Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Metlock, Inc. opened for business on May 1, 2022. Its trial balance before adjustment on May 31 is as follows. Metlock, Inc. Trial Balance

image text in transcribed

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

The Metlock, Inc. opened for business on May 1, 2022. Its trial balance before adjustment on May 31 is as follows. Metlock, Inc. Trial Balance May 31, 2022 Account Number Debit Credit 101 Cash $ 3,360 126 Supplies 2.000 130 Prepaid Insurance 2,304 140 Land 11,520 141 Buildings 57,600 149 Equipment 13,920 200 Notes Payable $ 38,400 201 Accounts Payable 10,736 208 Unearned Rent Revenue 3,168 311 Common Stock 33,600 429 Rent Revenue 9,408 610 Advertising Expense 576 726 Salaries and Wages Expense 3,168 732 Utilities Expense 864 $ 95,312 $ 95,312 In addition to those accounts listed on the trial balance, the chart of accounts for Metlock, Inc. also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-Buildings, No. 150 Accumulated Depreciation-Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No.631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data: 1. Prepaid insurance is a 1-year policy starting May 1, 2022. 2. A count of supplies shows $ 720 of unused supplies on May 31. 3. Annual depreciation is $ 2,880 on the buildings and $ 1,392 on equipment. 4. The note payable interest rate is 12%. (The note was taken out on May 1 and will be repaid along with interest in 2 years.) 5. Two-thirds of the unearned rent revenue has been earned. 6. Salaries and wages of $ 885 are unpaid and unrecorded at May 31. Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question.) Cash No. 101 Date Explanation Ref Debit Credit Balance May 31 Balance Supplies No. 126 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J1 Prepaid Insurance No. 130 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J1 Land No. 140 Date Explanation Ref Debit Credit Balance May 31 Balance Buildings No. 141 Date Explanation Ref Debit Credit Balance May 31 Balance Accumulated Depreciation- Buildings No. 142 Date Explanation Ref Debit Credit Balance May 31 Adjusting J1 Equipment No. 149 Date Explanation Ref Debit Credit Balance May 31 Balance Accumulated Depreciation- Equipment No. 150 Date Explanation Ref Debit Credit Balance May 31 Adjusting J1 Notes Payable No. 200 Date Explanation Ref Debit Credit Balance May 31 Balance Accounts Payable No. 201 Date Explanation Ref Debit Credit Balance May 31 Balance Unearned Rent Revenue No. 208 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J1 Salaries and Wages Payable No. 212 Date Explanation Ref Debit Credit Credit Balance May 31 Adjusting J1 Interest Payable No. 230 Date Explanation Ref Debit Credit Balance May 31 Adjusting J1 Common Stock No. 311 Date Explanation Ref Debit Credit Balance May 31 Balance Insurance Expense No. 722 Date Explanation Ref Debit Credit Balance May 31 Adjusting J1 Salaries and Wages Expense No. 726 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J1 Utilities Expense No. 732 Date Explanation Ref Debit Credit Balance May 31 Balance

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_2

Step: 3

blur-text-image_3

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

Finance For Non-Finance Executives

Authors: Anurag Singal

1st Edition

1952538327, 9781952538322

More Books

Students also viewed these Accounting questions

Question

Gambling by student and professional athletes

Answered: 1 week ago