Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

V Draw Lynbrook Security, Inc. Unadjusted Trial Balance December 31, 2020 Credits Debits 15,000 36,800 12,700 4,750 5,400 14,000 409,500 Account Tide Cash Accounts receivable

image text in transcribed
image text in transcribed
V Draw Lynbrook Security, Inc. Unadjusted Trial Balance December 31, 2020 Credits Debits 15,000 36,800 12,700 4,750 5,400 14,000 409,500 Account Tide Cash Accounts receivable Supplies Prepaid rent Unexpired insurance Inventory Office equipment Accumulated depreciation-office equipment Accounts payable Unearned security revenue Wages payable Income tax payable Note payable, due 2045 Common stock Retained earnings, 12/31/19 Security service revenue Salary expense Wages expense Depreciation expense Rent expense Supplies expense Utility expense Income tax expense Totals 124,000 23,250 17,000 22,000 8,000 75,000 150,000 36,380 634,600 99,600 248,250 45,300 88,000 37,800 48,800 24,330 1,090,230 1,090,230 o em Information necessary to prepare the year-end adjusting entries are below. 1. All security services are required to be paid in advance, and all cash collected for them is credited to Unearned security revenue. An analysis of the balance in the Uneared security revenue account indicates that $12,000 has been earned as of year-end. 2. Supplies on hand at year-end cost $5,000. 3. Prepaid rent at year-end should be $2,000. 4. Depreciation on the company's office equipment for the current year is 7,500. 5. A total of $26,000 of Wages is owed but unpaid at December 31. 6. The company borrowed $75,000 on August 1, 2020. The principal is due to be repaid on September 1, 2045. Interest is payable once a year on August 1 at an annual rate of 10%. 7. On December 1, 2020 Lynbrook paid Cassel Insurance $5,400 for its liability insurance for the next 12 months. The full amount was debited to unexpired insurance 8. The total Income taxes expense for the year ending December 31, 2020 is 32.400. Required: 1 As the controller of Lynbrook, prepare the necessary December 31, 2020, adjusting journal entries, with explanations. You do not have to show the impact on the balance sheet equation (use page 152 of your text as a guide) 2 Post the effects of the adjustments to the proper accounts, determine the account balances, and prepare an Adjusted Trial Balance as of December 3.1 2020

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

Step: 3

blur-text-image

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

Auditing A Risk Analysis Approach

Authors: Larry F. Konrath

5th Edition

032405789X, 9780324057898

More Books

Students also viewed these Accounting questions

Question

8.2 Explain the purpose of onboarding programs.

Answered: 1 week ago