Beruflich Dokumente
Kultur Dokumente
The companys year-end adjusted trial balance dated December 31, 2015, was:
Accounts
182,200
9,000
receivable
Supplies
600
Equipment
24,000
Accumulated
depreciation:
10,000
equipment
Accounts payable
3,000
Income taxes
7,000
payable
Capital stock
50,000
Retained
90,000
earnings
Dividends
4,000
Lawn care
192,000
revenue earned
Salary expense
104,000
Supply expense
2,400
Advertising
600
expense
Depreciation
expense:
2,000
equipment
Income taxes
23,600
expense
$
352,000
352,000
a-1. Prepare an income statement for the year ended December 31, 2015.
a-2. Prepare a statement of retained earnings for the year ended December 31, 2015.
a-3. Prepare the company's balance sheet dated December 31, 2015. (Amounts to be deducted
should be indicated by a minus sign.)
2) Reen Lawns, Inc., performs adjusting entries every month, but closes its accounts only at year-end.
The companys year-end adjusted trial balance dated December 31, 2015, was:
182,200
9,000
600
24,000
Accumulated
depreciation:
10,000
equipment
Accounts
3,000
payable
Income
7,000
taxes payable
Capital stock
50,000
Retained
90,000
earnings
Dividends
4,000
Lawn care
revenue
192,000
earned
Salary
expense
Supply
expense
Advertising
expense
104,000
2,400
600
Depreciation
expense:
equipment
2,000
Income
taxes
23,200
expense
$
352,000
352,000
1. Record the entry to close Lawn Care Revenue earned to income summary
2. REcord
3. Record
earnings account
4. Record
account.
Prepare an after-closing trial balance dated December 31, 2015.
3) Cat Fancy, Inc., has provided the following information from its most current financial statements:
Total revenue
125,000
Total expenses
80,000
32,000
8,000
74,000
76,000
4)
Terrific Temps fills temporary employment positions for local businesses. Some businesses pay in
advance for services; others are billed after services have been performed. Advanced payments are
credited to an account entitled Unearned Fees. Adjusting entries are performed on a monthly basis.
An unadjusted trial balance dated December 31, 2015, follows. (Bear in mind that adjusting entries
have already been made for the first 11 months of 2015, but not for December.)
TERRIFIC TEMPS
UNADJUSTED TRIAL BALANCE
DECEMBER 31, 2015
Cash
27,020
Accounts receivable
59,200
Unexpired insurance
900
Prepaid rent
Office supplies
Equipment
3,000
600
60,000
Accounts payable
29,500
4,180
Notes payable
12,000
Interest payable
320
Unearned fees
6,000
4,000
Unearned revenue
20,000
Retained earnings
49,000
Capital stock
25,000
Dividends
3,000
Fees earned
75,000
Travel expense
5,000
Insurance expense
2,980
Rent expense
9,900
780
Utilities expense
4,800
5,500
Salaries expense
30,000
Interest expense
320
12,000
$ 225,000
$ 225,000
Other Data
1. Accrued but unrecorded fees earned as of December 31, 2015, amount to $1,500.
2. Records show that $2,500 of cash receipts originally recorded as unearned fees had been earned as
of December 31.
3. The company purchased a six-month insurance policy on September 1, 2015, for $1,800.
4. On December 1, 2015, the company paid its rent through February 28, 2016.
5. Office supplies on hand at December 31 amount to $400.
6. All equipment was purchased when the business first formed. The estimated life of the equipment at
that time was 10 years (or 120 months).
7. On August 1, 2015, the company borrowed $12,000 by signing a six-month, 8 percent note payable.
The entire note, plus six months' accrued interest, is due on February 1, 2016.
8. Accrued but unrecorded salaries at December 31 amount to $2,700.
9. Estimated income taxes expense for the entire year totals $15,000. Taxes are due in the first quarter
of 2016.
Instructions
a For each of the numbered paragraphs, prepare the necessary adjusting entry
.
1. Record the accrued but uncollected fees earned
2. Record fees earned as of December 31st
3. Record the December insurance expense
4. REcord the December rent expense
5. Record the offices supplies used in December
6. Record the December depreciation expense
7. Record the interest accrued in December
8. Record the salaries accrued in December
9. Record the income taxes accrued in December
B. Determine that amount at which each of the following accounts will be reported in the companys
2015 income statement:
1. FEES EARNED
2. TRAVELS EXPENSE
3. INSURANCE EXPERIENCE
4. RENT EXPENSE
The unadjusted trial balance reports dividends of $3,000. As of December 31, 2015, have these dividends been paid?
Yes
No