Question

ly the e de lowin Problem3 The ehow diing e CONCEPTAL cONeCTION A e ing P Y g e e Rngn Corporstion a Dene and Finl Stemen Aing ORECTIVEO0 Required Cale 2. Prep indic 000 4300 Co Spli 9.00 Problem A D d Oder A year-end prepared Acounts Acounts 50000 Co Common Depreci Diidmd Equipe Income1 S.000 Servie Re R Ep Iter Epe 4500 Income Interen Toul Notes P At yearend you have the following dua for adonente An analyi indicate that pepaid st on December 31 should be 52.300 h A plosical ventory shows tat S5 of offor peles is on hd e Depreciation for 2014 i 535.250 4. An analysis indicates that uncarmed service evee shod he $3.120 Wages in the amount of 53.450 are owed but ungaid and unonded at yen-d Ss months' interest at on the sote was pid on Septenber 10 Internst for the pe Other A Requir 1. Pre 2. Pre Proble October I e Dember 31 unpuid und undel Income tat of $55 59 is owed but umcoded and unpuid Fodor itoba C Required 1 Prepere thr adjting mries 2 Pepare a tatement of earnings, a ttemet of tned mmins, and a stae dal position ing adted acout halanus 1 CONCEPTUAL CONNECTION Wy wuld y w se pepare fi l til aher the aaduting i eu Sup Pro or

Answer 1

Rangoon Corporation Adjusting Enteries Date Particulars 31.12.2014 Rent Expense a/c Dr. To Prepaid Rent (Rent expensed) 9500 - 2300 = 7200 Debit in $ Credit in $ 7200 7200 3550 31.12.2014 Supplies Expense a/c Dr. To Supplies (Supplies expensed) 4200 - 650 3550 35250 31.12.2014 Depreciation Expense a/c Dr. To Accum. Depre - Equip. (To record depreciation) 35250 8080 31.12.2014 Unearned Service Revenue a/c Dr. To Service Revenue (Revenue earned) 11200 - 3120 = 8080 8080 Dr. 3450 31.12.2014 Wages Expense a/c To Wages Payable (Wages accrued) 3450 750 31.12.2014 Interest Expense a/c Dr. To Interest Payable (Interest accrued) 50000 x 6% x 3/12 750 Dr. 55539 31.12.2014 Income Tax Expense a/c To Income Tax Payable (Income Tax accrued) 55539

Worksheet For the period ending 31.12.2014 Unadjusted Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 3100 3100 15900 15900 4200 3550 650 9500 7200 2300 625000 625000 104000 35250 139250 60900 60900 9400 9400 11200 8080 3120 3450 3450 750 55539 55539 50000 50000 279500 279500 37000 37000 598000 8080 606080 137000 3450 140450 229000 7200 236200 4500 750 5250 3550 3550 35250 35250 55539 55539 1089100 1089100 113819 1138191184089 1184089 Particulars Cash Accounts Receivable Supplies Prepaid Rent Equipment Accum. Depre - Equip. Other Assets Accounts Payable Unearned Service Revenue Wages Payable Interest Payable Income Tax Payable Note Payable Common Stock Retained Earnings Service Revenue Wages Expense Rent Expense Interest Expense Supplies Expense Depreciation Expense Income Tax Expense Totals 750 606080 Statement of Income For the period ending 31.12.2014 Service Revenue Less: Wages Expense Rent Expense Interest Expense Supplies Expense Depreciation Expense 140450 236200 5250 3550 35250 420700 185380 -55539 129841 Income Tax Expense Net Income Statement of Retained Earnings For the period ending 31.12.2014 Beginning Balance Net Income 37000 129841 166841

Amounts in $ Amounts in $ Cash 9400 3120 3450 750 Balance sheet As at 31.12.2014 Assets Amounts in $ Amounts in $ Liabilities Current Assets Current Liabilities 3100 Accounts Payable Accounts Receivable 15900 Unearned Service Revenue Supplies 650 Wages Payable Prepaid Rent 2300 21950 Interest Payable Income Tax Payable Non Current Assets Equipment 625000 Non Current Liabilities Accum. Depre - Equip. -139250 485750 Note Payable Other Assets 60900 Shareholders Equity Common Stock Retained Earnings Total Assets 568600 Total Liabilities & Equity 55539 72259 50000 279500 166841 446341 568600