Question

Question 9 Fox Enterprises is owned by Edmund Fox and has a January 31 fiscal year end. The company prepares adjusting entries on an annual basis. The following trial balance was prepared before adjustments: FOX ENTERPRISES Trial Balance January 31, 2017 Debit Credit Cash $4,980 Accounts Receivable 14,590 Prepaid Insurance 3,600 Supplies 6,630 Equipment 31,100 Accumulated Depreciation-Equipment $12,440 Accounts Payable 7,710 Notes Payable 11,200 Unearned Revenue 7,370 E. Fox, Capital 18,270 E. Fox, Drawings 119,300 Service Revenue 213,800 Rent Expense 20,500 Salaries Expense 66,800 Telephone Expense 3,290 $270,790 $270,790

Answer 1

Fox Enterprises Adjusting Enteries Trans. Particulars 1 Insurance Expense a/c Dr. To Prepaid Insurance (Insurance expensed) 3600 x 7/12 Debit in $ Credit in $ 2100 2100 2 Dr. 5760 Supplies Expense a/c To Supplies (Supplies Expensed) 6630 - 870 5760 3 6220 Depreciation Expense a/c Dr. To Accum. Depre - Equip. (To record depreciation) 31100 / 5 6220 Dr. 5200 Unearned Revenue a/c To Service Revenue (Revenue earned) 5200 5 Interest Expense a/c Dr. To Interest Payable (Interest accrued) 11200 x 5% x 3/12 140 Dr. 1325 Salaries Expense a/c To Salaries Payable (Salary accrued) 1325 Dr. 2660 Accounts Receivable a/c To Service Revenue (Revenue earned) 2660 Dr. 175 Telephone Expense a/c To Accounts Payable (Expenses accrued) 175

Worksheet For the period ending January 31, 2017 Particulars Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accum. Depre - Equip. Accounts Payable Salaries Payable Interest Payable Unearned Revenue Note Payable E.Fox, Capital E.Fox, Drawings Service Revenue Rent Expense Salaries Expense Telephone Expense Insurance Expense Supplies Expense Depreciation Expense Interest Expense Totals Unadjusted Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 4980 4980 14590 2660 17250 3600 2100 1500 6630 5760 870 31100 31100 12440 6220 18660 7710 175 7885 1325 1325 140 140 7370 5200 2170 11200 11200 18270 18270 119300 119300 213800 7860 221660 20500 20500 66800 1325 68125 3290 175 3465 2100 2100 5760 5760 6220 6220 140 140 270790 270790 23580 23580 281310 281310

Statement of Income For the period ending January 31, 2017 Service Revenue 221660 Less: Rent Expense 20500 Salaries Expense 68125 Telephone Expense 3465 Insurance Expense 2100 Supplies Expense 5760 Depreciation Expense 6220 Interest Expense 140 106310 Net Income 115350 Statement of Owner's Equity For the period ending January 31, 2017 E.Fox, Capital 18270 Net Income 115350 133620 E.Fox, Drawings -119300 14320

Amounts in $ Amounts in $ Balance sheet As at 31.12.2017 Assets Current Assets Cash Accounts Receivable Prepaid Insurance Supplies Amounts in $ Amounts in $ Liabilities Current Liabilities 4980 Accounts Payable 17250 Salaries Payable 1500 Interest Payable 24600 Unearned Revenue 7885 1325 140 870 2170 11520 Non Current Assets Equipment Accum. Depre - Equip. 11200 31100 -18660 Non Current Liabilities Note Payable 12440 Owner's Equity E.Fox, Capital 37040 Total Liabilities & equity 14320 37040 Total Assets