Question

Foster Company Unadjusted Trial Balance December 31, 2018 119,000 28,000 6,000 18,000 100,000 20,000 78,000 Cash Accounts Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock | Retained Earnings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total 40,000 7,000 16,500 9,500 45,000 43,000 37,600 5,000 474,500 12,000 40,000 12,000 38,000 8,000 145,000 10,000 2,100 32,000 673,100 673,100

1. The prepaid insurance balance reflects a 12-month insurance policy which started on Sept. 1, 2018, and no adjustments were made from Sept. 1 – Dec. 31, 2018. Write the adjusting journal entry for Dec. 31, 2018.

Insurance Expense	6,000
Prepaid Insurance		6,000

2. Additional depreciation expense of $15,000 needs to be recorded for the year ended 2018.

Depreciation Expense	15,000
Accumulated Depreciation		15,000

3. Wages due to employees of $8,000 need to be recorded at year end. These wages will be paid to employees on January 9, 2019. (next month)

Wages Expense	8,000
Wage payable		8,000

4. The company has completed $12,900 of the amount in unearned revenue as of Dec. 31^st.       

Unearned Revenue	129,000
Service Revenue		129,00

5. In Dec. the company provided services worth $8,000 to clients that were not yet billed or recorded by Dec. 31. Record the additional revenue.

Accounts Receivable	8,000
Service Revenue		8,000

6. On Dec 31^st the company completed a physical count of their supplies and determined that only $4,000 of supplies are still on hand.

Supplies Expense	2,000
Supplies		2,000

Part 2: Post the adjusting journal entries to t-accounts:

(Hints on getting started: Above each T-account, write the account name of each account affected by an adjusting journal entry (you may not need to use all of the T-accounts). Write in the unadjusted balance for each of these accounts from the Unadjusted Trial Balance provided in question 1 of your D2L quiz (the unadjusted balance might be a debit, a credit, or zero balance). Now you are ready to post your adjusting journal entries from Part 1 to the corresponding T-accounts and calculate adjusted balances.

       

Part 3: Prepare the Adjusted Trial Balance (i.e., after the previous 6 journal entries are posted)

______________ (Company Name)

         

______________ (Date)

Adjusted Trial Balance

Cash
Accounts Receivable
Supplies
Prepaid Insurance
Inventory
Vehicle
Equipment
Accumulated Depreciation
Accounts Payable
Unearned Revenue
Wages Payable
Long-Term Notes Payable
Common Stock
Retained Earnings (1/1/2018)
Dividends
Service Revenue
Repair Expense
Delivery Expense
Depreciation Expense
Rent Expense
Insurance Expense
Wages Expense
Supplies Expense
Interest Expense
Income Tax Expense
Total

Answer 1

Beg.Bal Cash $ 1,19,000 End.Bal $ 1.19.000 End.Bal $1,19,000 $ 1,19,000 Accumulated Depreciation $55,000 Beg.Bal $40,000 Depreciation Expenses $15,000 $55,000 $ 55,000 $ 36,000 Accounts receivable Beg.Bal $ 28,000 End.Bal Service Revenue $ 8,000 $ 36,000 End.Bal Accounts Payable $ 7,000 Beg.Bal $ 7,000 $ 7,000 $ 7,000 $ 36,000 Beg.Bal $ 16,500 Supplies $ 6,000 Supplies Expenses End.Bal $ 6,000 $ $ $ 2,000 4,000 6,000 Service Revenue End.Bal Unearned Revenue $ 12,900 Beg.Bal $ 3,600 $ 16,500 $ 16,500 Beg.Bal End.Bal Prepaid Insuurance $ 18,000 Insurance Expenses $ End.Bal $ | $ 18,000 $ 6,000 12,000 18,000 Wages payable $17,500 Beg.Bal Wages Expenses $ 17,500 $ 9,500 $ 8,000 $ 17,500 Beg.Bal Inventory $1,00,000 End.Bal $1,00,000 End.Bal $1,00,000 $1,00,000 Long term payable $45,000 Beg.Bal $45,000 $45,000 $ 45,000 Beg.Bal Vehicle $ 20,000 End.Bal $ 20,000 End.Bal $ 20,000 $ 20,000 Common Stock $43,000 Beg.Bal $43,000 $43,000 $43,000 Beg.Bal Equipment $ 78,000 End.Bal | $ 78,000 End.Bal $ $ 78,000 78,000 Retained Earnings $37,600 Beg.Bal $37,600 $37,600 $37,600

Beg.Bal Dividend $ 5,000 End.Bal $ 5,000 1,53,000 $ $ 5,000 5,000 Wages Expenses Beg.Bal $ 1,45,000 Income Statement $ Wages payable $ 8,000 $1,53,000 $ 1,53,000 Income Statement Service Revenue $4,95,400 Beg.Bal Unearned Revenue Accounts receivable $ 4,95,400 12,000 $4,74,500 $ 12.900 $ 8,000 $4,95,400 Beg.Bal Supplies Supplies Expenses $ 10.000 Income Statement $ $ 2,000 $ 12,000 $ 12,000 Beg.Bal Repair Expenses $ 12,000 Income Statement $ 12,000 Beg.Bal $ $ 12,000 12,000 Interest Expenses $ 2,100 Income Statement $ $ 2,100 $ 2,100 2,100 Beg.Bal Delivery Expenses $ 40,000 Income Statement $ 40,000 Beg.Bal $ 40,000 $ 40,000 Income Tax Expenses $ 32,000 Income Statement $ $ 32,000 $ 32,000 32,000 $ 27,000 Beg.Bal Accumulated Depreciation Depreciation Expenses $ 12,000 Income Statement $ 15,000 $ 27,000 $ 27,000 Beg.Bal Rent Expenses $ 38,000 Income Statement $ 38,000 $ 38,000 $ 38,000 Ls 9.00 $ Beg Bal Prepaid Insurance 14,000 Insurance Expenses $ 8,000 Income Statement $ 6,000 $ 14,000 $ 14,000

Credit $ $ Foster Company Date 31.12.2018 Adjusted Trial Balance Accounts Title Debit Cash $ 1,19,000 Accounts Receivable 36,000 Supplies $ 4,000 Prepaid Insurance $ 12,000 Inventory $ 1,00,000 Vehicle $ 20,000 Equipment $ 78,000 Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends $ 5,000 Service Revenue Repair Expense | $ 12,000 Delivery Expense 40,000 Depreciation Expense 27,000 Rent Expense 38.000 Insurance Expense $ 14,000 Wages Expense $ 1,53,000 Supplies Expense $ 12,000 Interest Expense $ 2.100 Income Tax Expense 32,000 $ 7,04,100 55,000 7,000 3,600 17,500 45,000 43,000 37,600 $ $ $ 4,95,400 $ 7,04,100