Question

Completing the Accounting Cycle 229 Learning Objectives 1, 2, 3. 4. 5.6 P4-31A Completing the accounting cycle from adjusting entries to post-closing trial balance with an optional worksheet The uradjusted trial balance of Williamson Anvils at December 31, 2016, and the data for the adjustments follow: 5. Net Income 519,890 WILLIAMSON ANVILS Unadjusted Trial Balance December 31, 2016 Account Title Cash Balance Debit Credit $ 16,370 16,500 2.530 1,800 29,000 $ 10,000 6.600 Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Revenue Wiliamson, Capital Williamson, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Supplies Expense Total 7,200 28.000 3.500 20,500 2,600 $ 72,300 $72.300 Adjustment data: a. Unearned Revenue still uncarned at December 31, $3,300. b. Prepaid Rent still in force at December 31, $2,400. c. Office Supplies used, $1,200. d. Depreciation, $350. c. Accrued Salaries Expense at December 31, $230. Requirements 1. Open the T-accounts using the balances in the unadjusted trial balance. 2. Complete the worksheet for the year ended December 31, 2016. (optional) 3. Prepare the adjusting entries, and post to the accounts. 4. Prepare an adjusted trial balance. 5. Prepare the income statement, the statement of owner's equity, and the classified balance sheer in report form. Assume that there were no contributions made by the owner during the year.

Answer 1

1)

Cash

Accounts Receivable

Prepaid Rent

Office Supplies

Bal.

$ 16,370.00

Bal.

$ 16,500.00

Bal.

$ 2,530.00

Bal.

$ 1,800.00

Equipment

Accumulated Depreciation

Accounts Payable

Salaries Payable

Bal.

$ 29,000.00

Bal.

$ 10,000.00

Bal.

$ 6,600.00

Bal.

$               -

Unearned Revenue

Williamson, Capital

Williamson, Withdrawals

Service Revenue

Bal.

$ 7,200.00

Bal.

$ 28,000.00

Bal.

$ 3,500.00

Bal.

$ 20,500.00

Salaries Expense

Rent Expense

Depreciation Expense

Supplies Expense

Bal.

$   2,600.00

Bal.

$               -

Bal.

$             -

Bal.

$             -

3)

Adjusting Entries Particulars Debit Credit $3,900.00 Unearned Revenue To Service Revenue ($ 7200 - $ 3300) $3,900.00 b) $ 130.00 Rent Expense To Prepaid Rent ($ 2530 - $ 2400) $ 130.00 $1,200.00 Supplies Expense To Supplies $1,200.00 $ 350.00 Depreciation Expense To Accumulated Depreciation $ 350.00 $ 230.00 Salaries Expense To Salaries Payable $ 230.00

516370 Cash Bal. Cash $16,370.00 Accounts Receivable $16,500.00 Bal. Bal. Bal. Prepaid Rent $2,530.00 b) $130.00 End. Bal $2,400.00 Bal. Office Supplies $ 1,800.00 C) $ 1,200.00 End. Bal $ 600.00 Bal. $29,0 cruipment Equipment $29,000.00 Accumulated Depreciation End. Bal $10,350.00 Bal. $10,000.00 d) $ 350.00 Accounts Payable Bal. Bal. end. Bal $6,60.00 $6,600.00 End. Bal $ Salaries Payable 230.00 Bal. e) $ $ 230.00 Unearned Revenue $ 3,900.00 Bal. $ 3,300.00 Williamson, Capital Bal. Williamson, Withdrawals $3,500.00 $ 7,200.00 $28,000.00 a) End. Bal Bal. Service Revenue End. Bal $ 24,400.00 Bal. a) $20,500.00 $ 3,900.00 Bal. Salaries Expense $ 2,600.00 End. Bal $2,830.00 $ 230.00 Bal. Rent Expense - End. Bal $ 130.00 130.00 Bal. $ $ Depreciation Expense $ - End. Bal $ 350.00 $ 350.00 Bal. Supplies Expense - End. Bal $ 1,200.00 $ 1,200.00 b) $

4)

Adjusted Trial Balance
Particulars			Debit	Credit
Cash			$   16,370.00
Accounts Receivable			$   16,500.00
Prepaid Rent			$      2,400.00
Office Supplies			$         600.00
Equipment			$   29,000.00
Accumulated Depreciation				$   10,350.00
Accounts Payable				$      6,600.00
Salaries Payable				$         230.00
Unearned Revenue				$      3,300.00
Williamson, Capital				$   28,000.00
Williamson, Withdrawals			$      3,500.00
Service Revenue				$   24,400.00
Salaries Expense			$      2,830.00
Rent Expense			$         130.00
Depreciation Expense			$         350.00
Supplies Expense			$      1,200.00
			$   72,880.00	$   72,880.00

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