Question

The general ledger of Zips Storage at January 1, 2021, includes the following account balances: Credits Debits $ 25,000 15,800 12,800 152,000 Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Totals $ 7,100 6, 200 147,000 45,300 $205,600 $205,600 The following is a summary of the transactions for the year: 1. January 9 Provide storage services for cash, $138, 100, and on account, $54,200. 2. February 12 Collect on accounts receivable, $51,900. 3. April 25 Receive cash in advance from customers, $13,300. 4. May 6 Purchase supplies on account, $10,000. 5. July 15 Pay property taxes, $8,900. 6. September 10 Pay on accounts payable, $11,800. 7. October 31 Pay salaries, $127,600. 8. November 20 Issue shares of common stock in exchange for $31,000 cash. 9. December 30 Pay $3,200 cash dividends to stockholders. Insurance expired during the year is $7,400. Supplies remaining on hand at the end of the year equal $3,300. Provide services of $12,200 related to cash paid in advance by customers. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

I am not sure where the adjusting entries go or if there even needs to be one. If there is an adjusting entries how do I know what needs to be adjusted?

Answer 1

profit and los let and loss statement prepaid insurance 2400 7400 lanation Explanation : since the amount of insurance paid during the last year included the next years insurance amount also. so it is treated as prepaid expense in the last year. In the ccogent year the amount is adjusted to the corent year balance sheet. It is to be adjusted because the amount belongs to coorent year. 3300 B closing stck 3300 pcorchases Gozplanation : closing stock balance shall be Shown in balance sheet as an Asset. Since the stock belongs to supplies at the end of the year the stock amant shall be treated as closing stock as it is Asset cs Scanned with CamScanner to the Company the coupe

12800 ç Recieved in advance 12200 Sales revenue Esplanation : . In the previous years when canh Amount recieved for the services to be rendered in future time the amount recieved in the previous year shall be treated as advance and so the Amount credited to relieved in advance Account when the services rendered Amount shall be adjusted aganist Sales revenue CS Scanned with CamScanner