Question

ACCOUNT TITLE UNADJUSTEDTB DEBT CREDIT BIG CONSTRUCTION COMPANY Uradjusted Trial Balance December 200 ADJUSTMENTS ROSTEDTST DEBIT CREDIT DER GET Notes Receivable Accounts Receivable Inventory 12/31/2020 Prepaid Insurance Prepaid Rent Supplies 220.000 24 000 23.000 47000 OVE E ST 18,000 1 HELPLBL 12,500 TI 279.000 Land Equipment Accu Deprec Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable (Due 2022) Owner's Capital Owner's Drawings Sales Revenue Sales Returns and Allowances Sales Discount Purchases Purchases and Allowances Purchases Discount Freight in Rent Expense Salaries and Wages Expense Utilititles Expense Advertising Expense Interet Expense Interest Revenue Rent Revenue Totals 800 LIMIT 21.000 2800 1.900 2,700 IIIIIIIII IIIII IIIIIIII

Answer 1

Answer to (a)

Si no. Credit In the books of Big Construction Company Adjusting Journal Entries Description Debit 1 Loss on Shrinkage $ 5,000 Inventory (being loss on inventory recorded) $ 5,000 $ 2 Depreciation Accumulated depreciation equipment (being depreciation recorded) 9,000 I$ 9,000 $ 2,800 3 Salaries & Wages Salaries & Wages Payable (being accrued salaries recorded) $ 2,800 $ 5,900 4 Rent Prepaid rent (being rent expenses recorded) $ 5,900 $ 1,100 5 Supplies Expense Supplies (being expenses recorded) $ 1,100 $ 3,400 6 Accounts Receivable Sales Revenue (being accrued sales recorded) $ 3,400 $ 2,000 7 Insurance Prepaid Insurance (being insurance recorded) $ 2,000 $ 400 8 Interest Receivable Interest Revenue (being interest income recorded) $ 400 $ 4,500 9 Unearned rent revenue Rent revenue (being revenue from rent recorded) $ 4,500

Answer to (b)

Adjustments Debit Credit Income Statement Debit Credit Balance Sheet Debit Credit Unadjusted T.B Debit Credit 2,20,000 24,000 23,000 47,000 4,300 8,400 2,900 3,400 5,000 2,000 5,900 1,100 1,100 28,000 90,000 Adjusted T.B Debit Credit 2,20,000 24,000 26,400 42,000 2,300 2,500 1,800 1,100 28,000 90,000 27,000 28,000 2,000 8,000 75,000 1,24,000 4,700 2,82,400 2,100 1,900 51,000 9,000 18,000 28,000 2,000 4,500 12,500 75,000 1,24,000 Account title Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurance Prepaid rent Supplies Supplies Expennse Land Equipment Accumulated depreciation Accounts Payable Insurance Unearned rent revenue Mortgage payable Owners capital Owners Drawings Sales revenue Sales return & allowances Sales Discount Purcahses Purchases & allowances Purchases Discount Freight in Rent expense Salaries & wages Salaries & Wages Payable Utility Advertising Internet Interest Revenue Interest Revenue Receivable Rent Revenue Depreciation Loss on shrinkage Total 4,700 2,79,000 3,400 2,100 1,900 51,000 800 1,200 1,200 3,000 21,000 18,000 5,900 3,000 26,900 20,800 2,800 2,800 2,800 2,800 1,900 2,200 2,800 1,900 2,200 15,000 400 15,400 400 400 2,700 4,500 7,200 9,000 5,000 34,100 9,000 5,000 5,71,800 5,56,200 5,56,200 34,100 5,71,800 . .

Answer to (c )

Income Statement for the year ended dec 31,20 20 Particulars Amount (in s Amount (in $) Amount (in $) 2,82,400 Sales revenue Less: Sales return & allowances Sales Discount Net Sales 2,100 1,900 2,78,400 Less: Purcahses Purchases & allowances Purchases Discount Net Purchases loss on Shrinkage 51,000 -800 -1,200 49,000 5,000 2,24,400 Gross Profit Less Expenses Supplies Expennse Insurance Freight in Rent expense Salaries & wages Utility Advertising Internet Depreciation Total expenses Add: Other Income Rent revenue Interest Revenue 1,100 2,000 3,000 26,900 20,800 2,800 1,900 2,200 9,000 69,700 7,200 15,400 22,600 Net Profit 1,77,300

Answer to (d) Calculation of Owners' Equity Statement Particulars Amount (in $) Owners Capital 1,24,000 Less: Owners drawings 4,700 Add: Net Profit 1,77,300 Owners capital at the end 2,96,600