The unadjusted trial balance for Sandhill Video Arcade at its fiscal year end of May 31, 2021, is as follows: Credit SANDHILL VIDEO ARCADE Trial Balance May 31, 2021 Debit Cash $5,940 Supplies 2,910 Equipment 115,000 Accumulated depreciation equipment Notes payable Unearned revenue V. Gupta, capital V. Gupta, drawings 35,400 Service revenue Rent expense 12,600 Salaries expense 45,800 Interest expense 3,300 Totals $220,950 $46,000 60,000 1,500 32,200 81,250 $220,950 Additional information: 1. 2. 3. On May 31, 2021, Sandhill Video Arcade had provided services but not collected or recorded $950 of revenue. On June 19, it collected this amount plus an additional $1,300 for revenue to be recognized in June. There was $815 of supplies on hand on May 31, 2021. The equipment has an estimated useful life of 10 years. Accrued salaries to May 31 were $1,470. The next payday is June 2 and the employees will be paid a total of $1,980 that day. The note payable has a 6% annual interest rate. Interest is paid monthly on the first day of the month. As at May 31, 2021, there was $725 of unearned revenue. 4. 5. 6. (a) Your answer is correct. Prepare adjusting journal entries for the year ended May 31, 2021, as required. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation May 31 Accounts Receivable 950 950 Service Revenue (To accrue revenue earned but not billed or collected) Supplies Expense May 31 2095 2095 Supplies (To record supplies used) Depreciation Expense May 31 11500 11500 Accumulated Depreciation - Equipment (To record depreciation) Salaries Expense May 31 1470 1470 Salaries Payable (To record accrued salaries) Interest Expense May 31 300 300 Interest Payable (To record accrued interest) Unearned Revenue May 31 775 775 Service Revenue (To record revenue for services provided) (b) Your answer is correct. Prepare reversing entries where appropriate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit Date Account Titles and Explanation June 1 Service Revenue 950 950 Accounts Receivable (To reverse accrued revenue earned entry) Salaries Payable June 1 1470 1470 Salaries Expense (To reverse accrued salaries adjusting entry) June 1 Interest Payable 300 300 Interest Expense (To reverse accrued interest adjusting entry) eTextbook and Media List of Accounts Attempts: 1 of 2 used (c) Prepare journal entries to record the June 2021 cash transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in order by date.) Date Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Save for Later Attempts: 0 of 2 used Submit Answer The unadjusted trial balance for Sandhill Video Arcade at its fiscal year end of May 31, 2021, is as follows: Credit SANDHILL VIDEO ARCADE Trial Balance May 31, 2021 Debit Cash $5,940 Supplies 2,910 Equipment 115,000 Accumulated depreciation equipment Notes payable Unearned revenue V. Gupta, capital V. Gupta, drawings 35,400 Service revenue Rent expense 12,600 Salaries expense 45,800 Interest expense 3,300 Totals $220,950 $46,000 60,000 1,500 32,200 81,250 $220,950 Additional information: 1. 2. 3. On May 31, 2021, Sandhill Video Arcade had provided services but not collected or recorded $950 of revenue. On June 19, it collected this amount plus an additional $1,300 for revenue to be recognized in June. There was $815 of supplies on hand on May 31, 2021. The equipment has an estimated useful life of 10 years. Accrued salaries to May 31 were $1,470. The next payday is June 2 and the employees will be paid a total of $1,980 that day. The note payable has a 6% annual interest rate. Interest is paid monthly on the first day of the month. As at May 31, 2021, there was $725 of unearned revenue. 4. 5. 6. (a) Your answer is correct. Prepare adjusting journal entries for the year ended May 31, 2021, as required. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation May 31 Accounts Receivable 950 950 Service Revenue (To accrue revenue earned but not billed or collected) Supplies Expense May 31 2095 2095 Supplies (To record supplies used) Depreciation Expense May 31 11500 11500 Accumulated Depreciation - Equipment (To record depreciation) Salaries Expense May 31 1470 1470 Salaries Payable (To record accrued salaries) Interest Expense May 31 300 300 Interest Payable (To record accrued interest) Unearned Revenue May 31 775 775 Service Revenue (To record revenue for services provided) (b) Your answer is correct. Prepare reversing entries where appropriate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit Date Account Titles and Explanation June 1 Service Revenue 950 950 Accounts Receivable (To reverse accrued revenue earned entry) Salaries Payable June 1 1470 1470 Salaries Expense (To reverse accrued salaries adjusting entry) June 1 Interest Payable 300 300 Interest Expense (To reverse accrued interest adjusting entry) eTextbook and Media List of Accounts Attempts: 1 of 2 used (c) Prepare journal entries to record the June 2021 cash transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in order by date.) Date Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Save for Later Attempts: 0 of 2 used Submit