Question

Accounting help need help with everything if possible.

Info Required: CONCEPTUAL CONNECTION Analyze the adjustap entries and identify their finansal talent accounts (Nore: pare any income lux effects. Use the fol Beplaning r ated Ering OBJECTIVE O Problem 3.64A Adjusting Entries and Financial Statements You have the following adjusted trial balance for Rangoon Corporational Day Rasa Cuparation Ladested Trial Babuse Derber 31, 2018 Dahit Mc Kelle 5 104,000 60,901 U Equipment Aswad Depection Equipment Other Assets Abouts Payabi red Service Revere Note 2001 Common Shares Retained Ea 1 131/2012 Service Revet Wasp Rent Expo Interest Expense Trel 9230 137.000 229.000 SL .100 At year-end, you have the following data for men An analysis indestes that prepaid rent on December 31 should be Aplysical intory shows that 5690 of office supplies is on hund Dep tion for 2014 is $13,250. d. An analysis indicates that med w e should be $3,130 Wapes in the amount of $1,450 c d ut paid and uncoded a year and 1. Six months interest at on the one was paid on September 30. Interest for the peris from October 1 to December 31 is unpaid and recorded. Inte tax o555.399 is owned but w onded and und Required: 1. Prepare the dating entries 2 Prepare a statement of warning a statement of retained a n d statement of cial position using adjusted content 3 CONCEPTUAL CONNECTION Why would you want to prepare financial until afer the adjacentries are

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Answer 1

Question 1: Please go through the attachment

Question 2: Please go through the attachment

Question 3: The reason for not preparing financial statements until after the adjusting entries are made is to comply with the accrual concept of accounting.

There is a need for passing the adjusting entries for recognition of revenue and expense related to a particular year.

Accurate or correct profit or loss and financial position cannot be known without adjusting entries.

Q 1. Adjustment Entries Account Title Debit Credit Rent Expenses 7,200 Prepaid Rent 7,200 ( Being, Rent expenses accrued is 7,200. the balance advance paid is 2,300) Supplies Expense 3,550 Supplies 3,550 (Being, Supplies of 3,550 is consumed and balance is still on hand of 650) Depreciation Expense 35,250 Accumulated Depreciation-Equipm (Being, Depreciation expenses recorded for the year) 35,250 8,080 Unearned Service Revenue Service Revenue 8,080 (Being, 8080 value of services provided in the current year.) 3,450 - Wages Expense Wages Payable ( Being, Wages accrued and still payable) 3,450 Interest Expense 1,000 Interest Payable 1,000 (Being, Interest for 3 months payable of 50,000*8%*3/12=1000) Income tax expense 55,539 Income tax payable 55,539 (Being, Income tax expense recognized for the year and not yet paid)

2c. Statement of Financial Position Assets Current Assets Cash Accounts Receivable Supplies Prepaid Rent 3,100 15,900 650 2,300 21,950 Fixed Assets Equipment Accumulated Depreciation Equipment Other Assets 625,000 139,250 485,750 60,900 568,600 Total Assets Liabilities and Equity Liabilities Accounts Payable Unearned Service Revenue Note Payable Wages Payable Interest Payable Income Tax Payable Equity Capital Stock Retained Earnings 9,400 3,120 50,000 3,450 1,000 55,539 122,509 279,500 166,591 446,091 Total Liabilities and equity 568,600 2a. Statement of Earnings Dec-31 A. Revenues Service Revenue 606,080 B. Expenses Wages Expense Rent Expense Interest Expense Supplies Expense Depreciation Expense 140,450 236,200 5,500 3,550 35,250 420,950 Net Income Before Tax A-B Less: Income Tax Net Income 185,130 55,539 129,591 2b.Statement of Retained Earnings Dec-31 Beginning Balance of Retained Earnings 37,000 Add: Net Income 129,591 Less: Drawings Closing Balance as on December 31 166,591

12 column worksheet-This is presented for your better understanding purpose. Accounts Income statement Debit Credit Statement of Retained Earnings Debit Credit Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation Equipment Other Assets Accounts Payable Unearned Service Revenue Note Payable Common shares Retained Earnings Service Revenue Wages Expense Rent Expense Interest Expense Supplies Expense Depreciation Expense Wages Payable Interest Payable Income Tax Expense Income Tax Payable Unadjusted Trial Balance Debit Credit 3,100 15,900 4,200 9,500 625,000 104,000 60,900 9,400 11,200 50,000 279,500 37,000 598,000 137,000 229,000 4,500 Adjustments | Adjusted Trial Balance Debit Credit Debit Credit 3,100 15,900 3,550 650 7,200 2,300 625,000 35,250 139,250 60,900 9,400 8,080 3,120 50,000 279,500 37,000 8,080 606,080 3,450 140,450 7,200 236,200 1.000 5,500 3,550 3,550 35,250 35,250 3,450 3,450 1,000 1,000 55,539 55,539 55,539 55,539 Balance Sheet Debit Credit 3,100 15,900 650 2,300 625,000 139,250 60,900 9,400 3,120 50,000 279,500 166,591 37,000 606,080 140,450 236,200 5,500 3,550 35,250 3,450 1,000 55,539 55,539 Net Income 129,591 1,184,339 | 1,184,339 | 606,080 129,591 166,591 Total 1,089,100 1,089,100 114,069 114,069 606,080 707,850 707,850