Question

Journalize The Following Adjustments. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 1,527.)

1.		Services performed for customers through February 27, 2022, but unbilled and uncollected were $4,180.
2.		Received notice that a customer who was billed $220 for services performed February 10 has filed for bankruptcy. Skysong Cleaning Services does not expect to collect any portion of this outstanding receivable.
3.		Skysong Cleaning Services uses the allowance method to estimate bad debts. Skysong Cleaning Services estimates that 3% of its month-end receivables will not be collected.
4.		Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $550 salvage value.
5.		Record 1 month of insurance expense.
6.		An inventory count shows $440 of supplies on hand at February 28.
7.		One week of services were performed for the customer who paid in advance on February 17.
8.		Accrue for wages owed through February 28, 2022.
9.		Accrue for interest expense for 1 month.
10.		Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to “income before taxes” to help with the income tax calculation.

Attached is the trial balance from the previous question.

Prepare a trial balance at February 28, 2022. by Study SKYSONG CLEANING SERVICES INC. Trial Balance 2/28/22 Debit Credit Cash 10,854 Accounts Receivable 6,270 Supplies 1,080 Prepaid Insurance 2.705 Prepaid Expenses 240 Equipment 5300 Accounts Payable 750 Notes Payable 8,800 PPP Unearned Service Revenue 612 REPREHENDERSPEEEEE Common Stock 8,250 Paid-in Capital in Excess of Par Value-Common Stock 6,050 - Cash Dividends 1,293 Treasury Stock 990 Service Revenue 9020 Utilities Expense 240 Salaries and Wages Expense 4,240 Loss on Disposal of Plant Assets 270 Totals 33,482 33.482

Answer 1

Skysong Cleaning Services Adjusting Enteries Trans. Particulars 1 Accounts Receivable a/c To Service Revenue (Services on account) Dr. Debit in $ Credit in 4180 4180 2 220 Allowance for doubtful accounts Dr. To Accounts Receivable (Uncollectibles written off) 220 3 Bad Debts Expense a/c Dr. 527 To Allowance for doubtful accounts (Bad debts estimated) (6270 +4180-220 ) x 3% = 307 + 220 = 527 527 Depreciation Expense a/c Dr. To Accum. Depre - Equip. (To record depreciation) (5300 - 550) / 48 99 Dr. 902 Insurance Expense a/c To Prepaid Insurance (Insurance expensed) 2705 / 3 902 Dr. 640 Supplies Expense a/c To Supplies (Supplies expensed) 1080 - 440 640 Dr. 153 Unearned Service Revenue a/c To Service Revenue (Revenue recognized) 612/4 153 8 Salary and Wages Expense a/c Dr. 2544 To Salary and wages payable (Salary accrued) 530 x 4 = 2120 + ( 530 x4/5) = 2544 2544 9 44 Interest Expense a/c Dr To Interest Payable (Interest accrued)8800 x 6% x 1/12 44 10 Dr. 769 Income Tax Expense a/c To Income Tax Payable (Income Tax accrued) 769

Worksheet For the period ending 28.2.2022 99 Particulars Cash Accounts Receivable Allowance for doubtful accounts Supplies Prepaid Insurance Prepaid Expenses Equipment Accum. Depre - Equip. Accounts Payable Salary and wages payable Unearned Service Revenue Interest Payable Income Tax Payable Notes Payable Common Stock Paid in Capital in excess of par Cash Dividends Treasury Stock Service Revenue Utilities Expense Salary and Wages Expense Loss on disposal of Plant assets Bad Debts Expense Depreciation Expense Insurance Expense Supplies Expense Interest Expense Income Tax Expense Totals Unadjusted Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 10854 10854 6270 4180 220 10230 220 527 307 1080 640 440 2705 902 1803 240 240 5300 5300 99 750 750 2544 2544 612 153 459 44 44 769 769 8800 8800 8250 8250 6050 6050 1293 1293 990 990 9020 4333 13353 240 240 4240 2544 6784 270 270 527 527 99 902 640 44 769 10078 902 640 44 769 41425 33482 33482 10078 41425 13353 Statement of Income For the period ending 28.2.2022 Service Revenue Less: Utilities Expense Salary and Wages Expense Loss on disposal of Plant assets Bad Debts Expense Depreciation Expense Insurance Expense Supplies Expense Interest Expense 240 6784 270 527 99 902 640 9506 3847 -769 3078 Income Tax Expense Net Income