Question

Accounting 1 Handouts 10. Consider the unadjusted trial balance of Freight Line Transport at May 31, 2017, and the related month-end adjustment data.

Answer 1

Adjustments Debit Credit Calculation 2,200 Unadjusted TB Debit Credit 7,400 1,440 5,500 1,700 84,500 4,990 4,200 1,100 b 450 c =5,500/5 =1,700-1,250 800 d 220 e =1,100/5 Freight Line Transport Account Names Cash Accounts Receivable Prepaid Rent Supplies Automobiles Accumulated Depreciation Accounts Payable Salary Payable Common Stock Retained Earnings Dividends Service Revenue Salary Expenses Rent Expense Fuel Expense Depreciation Expense Supplies Expense Totals Adjusted TB Debit Credit 7,400 3,640 4,400 1,250 84,500 5,790 4,200 220 74,700 10,500 4,100 19,000 3,470 1,100 3,300 800 450 114,410 114,410 74,700 10,500 4,100 16,800 2,200 a 3,250 220 1,100 3,300 800 450 4,770 111,190 111,190 4,770

19,000 Freight Line Transport Income Statement Year Ended May 31, 2017 Service Revenue Expenses Salary Expenses Rent Expense Fuel Expense Depreciation Expense Supplies Expense Total Expenses Net Income (Loss) 3,470 1,100 3,300 800 450 9,120 9,880 Freight Line Transport Statement of Retained Earnings Year Ended May 31, 2017 Retained Earnings, May 1, 2017 Net Income (Loss) Less: Dividends Retained Earnings, May 31, 2017 10,500 9,880 (4,100) 16,280

Freight Line Transport Balance Sheet May 31, 2017 Assets Current Assets Cash Accounts Receivable Prepaid Rent Supplies Total Current Assets 7,400 3,640 4,400 1,250 16,690 Fixed Assets Automobiles Accumulated Depreciation Automobiles, Net Total Assets 84,500 (5,790) 78,710 95,400 Liabilities & Stockholders Equity Current Liabilities Accounts Payable Salary Payable Total Current Liabilities 4,200 220 4,420 Stockholders Equity Common Stock Retained Earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 74,700 16,280 90,980 95,400