Question

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i Data Table - X The unadjusted trial balance of Watson Anvils at December 31, 2018, and the data for the adjustments follow. (Click the icon to view the unadjusted trial balance.) (Click the icon to v Read the requirements Credit Credit Account Title Cash Debit 15,790 $ Debit 15970 12500 2000 * More Info Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable 12,500 2,210 2,900 26,000 1200 26000 8,000 6,100 Account Title Cash Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Revenue Common Stock Dividends Retained Earnings Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment 8380 6100 180 1800 26000 Adjustment data: a. Uneared Revenue still unearned at December 31. $1,800. b. Prepaid Rent still in force at December 31, $2,000. c. Office Supplies used. $1,700. d. Depreciation, $380. e. Accrued Salaries Expense at December 31, $180 5,000 26,000 1,800 2500 Uneamed Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense 2,500 1800 21200 18,000 3,000 Print Done Depreciation Expense-Equipment 380 Supplies Expense Supplies Expense $ 64,900 $ 64,900 67440 Total Total 63660 Print Done 700se from any list or enter any number in the input fields and then continue to the next question.

Answer 1

Watson Anvils Adjusting Enteries Trans, Particulars a. Unearned Revenue a/c To Service Revenue (Revenue earned) 5000 - 1800 Dr. Debit in $ Credit in $ 3200 3200 b. Dr. 210 Rent Expense a/c To Prepaid Rent (Rent expensed) 2210 - 2000 210 Dr. 1700 Supplies Expense a/c To Office Supplies (Supplies expensed) 1700 d. Dr. 380 Depreciation Expense a/c To Accum. Depre-equip (To record depreciation) 380 e. Dr. 180 Salaries Expense a/c To Salary Payable (Salary accrued) 180 Dr. Closing Enteries Date Particulars 31.12.2018 Income Summary a/c To Salaries Expense To Rent Expense To Supplies Expense To Depreciation Expense (Expense accounts closed) Debit in $ Credit in $ 5470 3180 210 1700 380 Dr. 21200 31.12.2018 Service Revenue a/c To Income Summary (Revenue accounts closed) 21200 Dr. 15730 31.12.2018 Income Summary a/c To Retained Earnings (Profits Transferred) 15730 2500 31.12.2018 Retained Earnings a/c To Dividends (Dividends charged) 2500

Adjusted Trial Balance For the period ending 31.12.2018 Particulars Cash Accounts Receivable Prepaid Rent Office Supplies Equipment Accum. Depre-equip Accounts Payable Salary Payable Unearned Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense Supplies Expense Depreciation Expense Totals Debit in $ Credit in $ 15790 12500 2000 1200 26000 8380 6100 180 1800 26000 1800 2500 21200 3180 210 1700 380 65460 65460 Current Ratio = Current Assets / Current Liabilities = 31490 / 8080 = 3.90

Amounts in $ Amounts in $ Balance sheet As at 31.12.2018 Assets Current Assets Cash Accounts Receivable Prepaid Rent Office Supplies Amounts in $ Amounts in $ Liabilities Current Liabilities 15790 Accounts Payable 12500 Salary Payable 2000 Unearned Revenue 1200 31490 6100 180 1800 8080 Non Current Assets Equipment Accum. Depre-equip Total Assets 26000 -8380 Shareholders Equity Common Stock 17620 Retained Earnings 49110 Total Liabilities & Equity 26000 15030 41030 49110 21200 Statement of Income For the period ending 31.12.2018 Service Revenue Less: Salaries Expense 3180 Rent Expense 210 Supplies Expense 1700 Depreciation Expense 380 Net Income 5470 15730 Statement of Retained Earnings For the period ending 31.12.2018 Beginning Balance 1800 Net Income 15730 17530 Dividends -2500 15030