Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the trial balance above, along with the adjusting information below, present: 1.) the 7 general journal entries (a-g) necessary for year-end adjustment. 2) the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Using the trial balance above, along with the adjusting information below, present: 1.) the 7 general journal entries (a-g) necessary for year-end adjustment. 2) the 5 initial journal entries involving cash representing the five deferrals from part (1) 3) the 2 new year journal entries involving cash representing the two accrual adjustments from Part (1) a) $120 worth of prepaid insurance has expired. b) A count of the supplies shows $600 worth has been used up. c) Depreciation on equipment this year is $240. d) Depreciation on furniture is $320 this year. e) An unbilled invoice is discovered by Tammy. A customer owes $360 on account for a tattoo created on December 22nd. The customer will pay in full on January 18, 2021. f) As of today (the year-end), $140 worth of the Unearned Revenue has been earned. Tammy has only one employee, an assistant who works a five-day workweek at $750 per week. The employee was paid last Friday but worked two days this week (the year ends on a Tuesday) for which she has not been paid. The employee is looking forward to the Friday January 3, 2020 paycheck. Accumulated Depreciation-Furniture. Salaries Payable...... Unearned Revenue......... 1,600 Capital Stock....... 12,700 Dividends............ 400 Service Revenue.... 7,480 3,200 690 Salaries Expense........ Utilities Expense.......... Depreciation Expense-Equipment..... Depreciation Expense-Furniture......... Supply Expense..... Insurance Expense.. Totals.... .. $ 21,780 $ 21,780 Question Not yet answered Marlied out of 8.00 Plus question Tammy's Tattoos, a service providing corporation, had the following trial balance just before you, Tammy's accountant, adjusts the accounts at the end of Tammy's first year, December 31, 2020: Tammy's Tattoos Unadjusted Trial Balance December 31, 2020 Debit Credit $ 3,100 250 Cash........... Accounts Receivable.. Prepaid Insurance....... Supplies....... Equipment... Accumulated Depreciation-Equipment.. Furniture........... 840 5,600 7.700 Question 2 Not yet answered Marked out of 16.00 Flag question After completion of Problem 1, above, change the account balances to their "after adjustment" new totals and produce, in the proper format, an Adjusted Trial Balance dated December 31, 2020. This should be an entirely new document, not merely a couple of columns placed beside the upadjusted trial balance. A three-line heading is required. (Hint: Do not use the initial entries or the new year entries, only Problem 1 adjustments are to be used. An adjusted trial balance is always a combination of the unadjusted trial balance and the adjusting entries ONLY. And remember, it's not just the new accounts that change; it's every account that got adjusted changing which in turn produces the new Adjusted Trial 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

Accounting And Money For Ministerial Leadership Key Practical And Theological Insights

Authors: Nimi Wariboko

1st Edition

1625640129, 9781625640123

More Books

Students also viewed these Accounting questions