Question

Similar to prehi . 4A-23 4A-7. The unadjusted trial balance of OLYMPIA Corporation as of November 30, 20x1, is shown on the next page. Data needed for the end-of-month adjustments is as follows: Adjustment information: a. Remaining prepaid rent on November 30 is $1,600. b. Supplies on hand at the end of the month were $200. c. Monthly depreciation was $800. d. Additional accrued salary expense at the end of the month was $6,000. e. $1,900 of commission revenue remained unearned at the end of the month. f. Additional interest accrued on money borrowed from the bank by Olympia was $700 as of the end of the month. Required: 1. Open the ledger accounts listed in the trial balance in T-account format showing the beginning account balances as given. Make the adjusting entries to these accounts using the appropriate letter to mark each entry. 2. Make the closing entries to the T-accounts, using appropriate letters to mark each one, and calculate the ending balances for each account. 3. Prepare the income statement, balance sheet, and statement of changes in retained earnings for OLYMPIA.

Answer 1

Solution of Requirement of 1& 2 Cash Accounts Receivable 12000 Prepaid Rent 3100 2900 1500 a) 2900 12000 1600 Supplies Equipment 27500 700 500 b) Accumulated Depreciation-Equipment 4000 800 C) 4800 200 27500 Salaries Payable Interest Payable 2600 Unearned Commission Revenue 3200 5100 6000 d) 700 f) 6000 3300 1900 Common Stock Dividends 3500 20000 3500 CI. Retained Earnings 12200 14000 3500 9900 Cl. 8200 20000

65 Commission Revenue Supplies expense 500 500 CI. 66 cl. 9900 6700 3200 e) Salary expense 1800 7800 CI. 6000 Rent expense Interest expense 700 700 CI. Advertising expense 900 900 Cl. 1500 1500 Cl. Depreciation expense-Equipment 800 800 CI.

9900 Olympia Corporation Income Statement For the month ending November 30,20X1 Revenues; Commission Revenue Expenses; Supplies expense 500 Salary expense 7800 Rent expense 1500 Interest expense 700 Advertising expense 900 Depreciation expense -Equipment 800 Total Expenses Net Loss 12200 -2300 98 Olympia Corporation Retained Earnings Statement For the month ending November 30,20x1 Beginning Balance of Retained Earnings Less Net Loss -2300 Less Dividend -3500 Ending Balance of Retained Earnings 14000 101 -5800 8200

105 106 107 108 109 110 Olympia Corporation Balance Sheet As on November 30, 20X1 Assets Cash Accounts Receivable Prepaid Rent Supplies Total Current Assets Equipment Less Acumulated Depreciation - Equipment Total Assets 2900 12000 1600 200 6000 3300 1900 111 Liabilities & Stockholder's Equity Salaries Payable Interest Payable Unearned Commission Revenue Total Current Liabilities 16700 Stockholder's Equity Common Stock 22700 Retained Earnings 39400 Total Liabilities and Stockholder's Equity 112 113 11200 114 27500 -4800 20000 8200 115 28200 39400 116 117 118 119