Question

Prepaid Insurance 1,000 89,020 Accounts Receivable 103,100 103 100 Equipment 100,000 Allowance for Doubtful Accounts 1,500 1.500 Accumulated Depreciation Equipment 10.000 3,920 3920 Unearned Service Revenue Interest Payable 10,000 100,000 Notes Payable Salaries and Wages Payable Common Stock Service Revenue Bad Debt Expense 82,200 15,000 35,000 196,500 196,500 Insurance Expense Depreciation Expense Salaries and Wages Expense 22,800 22,800 Utilities Expense Office Expense 27,510 27.510 1,770

Required: 1. Prepare the adjusting entries on the Trial Balance tab, and complete the worksheet on the Trial Balance tab

2. On the Financial Statements tab, prepare the income Statement, Retained Earnings Statement, and Balance Sheet for the 2020 year

3. On the Tab complete T-Accounts for all accounts. The ending balances in every should agree to the balances on the Balance Sheet as of December 31, 2020

Answer 1

	Unadjusted		Adjustments		Adjusted		Income statement		Retained Earnings		Balance sheet
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	89020			25000	64020						64020
Accounts Receivable	103100		2500	15000	90600						90600
Allowance for Doubtful debts		1500				1500						1500
Supplies	3920				3920						3920
Prepaid insurance	1000			500	500						500
Prepaid Rent											0
Equipment	100000				100000						100000
Accumulated Depreciation - Equipment		10000		20000		30000						30000
Unearned Service revenue				10000		10000						10000
Interest payable				342.5		342.5						342.5
Salaries and Wages payable				3400		3400						3400
Notes Payable		82200				82200						82200
Common stock		15000				15000				15000		15000
Retained earnings		27510				27510				116597.5		116597.5
Dividends			25000		25000		25000
Service revenue		196500	10000	2500		189000		189000
Bad debt expense			15000		15000		15000
Insurance expense			500		500		500
Depreciation expense			20000		20000		20000
Interest expense			342.5		342.5		342.5
Rent expense	10000				10000		10000
Salaries and wages expense	22800		3400		26200		26200
Utilities expense	1100				1100		1100
Office expense	1770				1770		1770
	332710	332710	76742.5	76742.5	358952.5	358952.5	99912.5	189000		131597.5	259040	259040