Question

A partial tabular summary for Cheyenne Corp. on July 31, 2017, includes the accounts below before adjustments have been prepared. Assets = Liabilities + Stockholders' Equity Invest. Prepd. Acc. Depr.- Unearned Com. Reatined Earnings Notes Rec. + Supplies + Rent + Bldgs. - Bldgs. = Serv. Rev. + Stock + Rev. - Exp. - Div Bal. 18,000 21,500 5,600 280,000 -150,000 10,100 An analysis of the company's accounts shows the following. 1. The investment in the notes receivable earns interest at a rate of 6% per year. 2. Supplies on hand at the end of the month totaled $18,200. 3. The balance in Prepaid Rent represents 4 months of rent costs. 4. Employees were owed $3,000 related to unpaid salaries and wages. 5. Depreciation on buildings is $6,720 per year. 6. During the month, the company satisfied obligations worth $4,550 related to the Unearned Service Revenue. 7. Unpaid maintenance and repairs costs were $2,100. Prepare a tabular summary to record adjustments on July 31 assuming that adjustments are made monthly. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

Answer 1

Assets Acc. Deprel Accts. Pay + Notes Rec. + Int. Rec. + Supplies + Prepd. Rent + Bldgs. Liabilities Unearned Serv. Rev. 10100 Sal. & Wages Pay. Common Stock Bal. 18000 + Bldgs -150000 21500 + 5600 + |- + + + + -3300 + + -1400 + + + + + + -45 50 + + 2100

Stockholders' Equity Retained Earnings Rev. - Exp. -3300 -1400 -3000 -560 Interest Revenue Supplies Expense Rent Expense Salaries and Wages Expense Depreciation Expense Service Revenue Maintenance and Repairs Expense 4550 -2100