Question

Problem 4-2A Completing a work sheet LO1

The June 30, 2020, unadjusted trial balance for Trenton Consulting after its first year of operations follows:

Trenton Consulting Unadjusted Trial Balance June 30, 2020
	Unadjusted Trial Balance
Account		Debit			Credit
Cash	$	660
Accounts receivable		2,800
Prepaid rent		3,540
Equipment		8,400
Accounts payable				$	1,710
Toni Trenton, capital					24,810
Toni Trenton, withdrawals		6,680
Consulting revenue					30,000
Wages expense		24,720
Insurance expense		1,600
Rent expense		8,120
Totals	$	56,520		$	56,520

Additional information:

1. Annual depreciation on the equipment is $1,400.
2. The balance in the Prepaid Rent account is for six months of rent commencing March 1, 2020.
3. Unpaid and unrecorded wages at June 30 totalled $3,000.
4. Accrued revenues at June 30 totalled $3,900.

Required:
1. - 3. Use the above information to complete the work sheet.
4. Calculate the balance in the capital account as it would appear on the June 30, 2020, balance sheet.

Answer 1

Please give positive ratings so I can keep answering. If you have any queries please comment. Thanks!

Trenton Consulting
Work Sheet	Unadjusted		Adjustments		Adjusted		Remarks
Account Titles	Debit	Credit	Debit	Credit	Debit	Credit
Cash	660.00				660.00
Accounts Receivable	2,800.00				2,800.00
Prepaid Rent	3,540.00			2,360.00	1,180.00		Prepaid Rent is for 6 months from Mar-2020. So Mar-June 2020 is expire. i.e. 4 months so 3540/6*4.
Equipment	8,400.00				8,400.00
Accumulated Depreciation- Store Equipment				1,400.00		1,400.00	Depreciation on equipment for current period $ 1400.
Accounts Payable		1,710.00				1,710.00
Wages Payable				3,000.00		3,000.00	Unpaid and unrecorded wages at June 30 totaled $3,000.
Accrued revenue			3,900.00		3,900.00		Accrued revenues at June 30 totaled $3,900
Toni Trenton, Capital		24,810.00				24,810.00
Toni Trenton, Drawings	6,680.00				6,680.00
Consulting revenue		30,000.00		3,900.00		33,900.00	Accrued revenues at June 30 totaled $3,900
Wages Expense	24,720.00		3,000.00		27,720.00		Unpaid and unrecorded wages at June 30 totaled $3,000.
Insurance expense	1,600.00				1,600.00
Rent Expense	8,120.00		2,360.00		10,480.00		Prepaid Rent is for 6 months from Mar-2020. So Mar-June 2020 is expire. i.e. 4 months so 3540/6*4.
Depreciation- Equipment			1,400.00		1,400.00		Depreciation on equipment for current period $ 1400.
Total	56,520.00	56,520.00	10,660.00	10,660.00	64,820.00	64,820.00

Income Statement	Amount $
Consulting revenue	33,900.00
Net Revenue	33,900.00
Less:
Wages Expense	27,720.00
Insurance expense	1,600.00
Rent Expense	10,480.00
Depreciation- Equipment	1,400.00
Net Income	(7,300.00)
Toni Trenton, Capital
Openings	24,810.00
Add: Net Income	(7,300.00)
Less: Terry Manning, Drawings	6,680.00
Closing balance	10,830.00