Question

Required information (The following information applies to the questions displayed below.] Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Credit Debit $ 47,400 10,800 580 650 17,800 $ 7,900 9,460 2,230 Account Titles Cash Accounts receivable Supplies Prepaid insurance Service trucks Accumulated depreciation Other assets Accounts payable Wages payable Income taxes payable Note payable (3 years; 10% interest due each December 31) Common stock (4,500 shares outstanding) Additional paid-in capital Retained earnings Service revenue Remaining expenses (not detailed; excludes income tax) Income tax expense Totals 13,000 2,036 18, 324 4,200 72,300 33,300 $ 119,990 $ 119,990 Data not yet recorded at December 31 included: a. The supplies count on December 31 reflected $170 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $650. c. Depreciation expense for the current year, $4,100. d. Wages earned by employees not yet paid on December 3, $630. e. Income tax expense, $5,080.

Answer 1

Credits Debit $ 47,400 10,800 170 17,800 12,000 9,460 2,230 5,080 3,630 Trial balance as on 31st December :- Particulars Cash Accounts Receivable Supplies Prepaid Insurance Service Trucks Accumulated Depreciation Other assets Accounts Payable Income tax Payable Wages Payable Note Payable (3 years, 10% interest due each december 31) Common stock (4,500 shares outstanding) Additional paid in capital Retained earnings Service Revenue Remaining expenses (not detailed, excluding income tax) Supplies expense Insurance expense Depreciation expense Wages expense Income tax expense Total 13,000 2,036 18,324 4,200 72,300 33,300 410 650 4,100 3,630 5,080 132,800 132,800

Credit S Closing Journal entries :- Date Accounts Title & Explanation Debit 31-Dec Service Revenue 72,300 To Income Summary (Entry for closer of Revenue accounts to Income summary) 72,300 410 650 4,100 31-Dec Income Summary 47,170 To Supplies expense To Insurance expense To Depreciation expense To Wages expense To Income tax expense To Remaining expense (Entry for closer of Expense accounts to Income summary) 3,630 5,080 33,300 31-Dec Income Summary 25,130 To Retained earnings (Entry for transfer of Income summary to Retained earnings) 25,130