Question

Wusting entries to post-closing Worksheet Walance of Williamson Anvils at December 31, 2016, and the data We adjustments follow: paling the Accou Learning Obj 4,5,6 WILLIAMSON ANVILS Unadjusted Trial Balance December 31, 2016 5. Net Incomes or the summe exp. rev. CK Debit eri Account Title Cash Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Unearned Revenue Williamson, Capital Williamson, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense Equipment Balance Credit $ 16,370 16.500 2,530 1 800 29.000 5 10,000 Theone Summ, = tem RMY 6,600 perna - 7.200 28.000 3.500 20,500 2,600 Supplies Expense Total $ 72,300 572,300 Adjustment data: a. Unearned Revenue still unearned 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. e. Accrued Salaries Expense at December 31, $230, Requirements Servo 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 sheet in report form. Assume that there were no contributions made by the owner during the year. only 1 Ledger balance at first clone ch optional) Sting by

Answer 1

Williamson Anvils Adjusting Enteries Trans. Particulars a. Unearned Revenue a/c Dr. To Service Revenue (Revenue recognized) 7200 - 3300 = 3900 Debit in $ Credit in $ 3900 3900 b. 130 Rent Expense a/c Dr. To Prepaid Rent (Rent expensed) 2530 - 2400 = 130 130 1200 Office Supplies Expense a/c Dr. To Office Supplies (Office supplies used) 1200 d. Dr. 350 Depreciation Expense - Equip a/c To Accum. Depre - Equip (To record depreciation) 350 e. Dr. 230 Salaries Expense a/c To Salaries Payable (Salary expense accrued) 230 Closing Enteries Trans. Particulars 31.12.2016 Income Summary a/c Dr. To Salaries Expense To Rent Expense To Depreciation Expense - Equip To Supplies Expense (Expense accounts closed) Debit in $ Credit in 4510 2830 130 350 1200 24400 31.12.2016 Service Revenue a/c Dr. To Income Summary (Revenue accounts closed) 24400 19890 31.12.2016 Income Summary a/c Dr. To Williamson, Capital (Profits transferred) 19890 3500 31.12.2016 Williamson, Capital a/c Dr. To Williamson, Withdrawals (Withdrawals charged) 3500

Worksheet For the period ending 31.12.2016 Particulars Cash Accounts Receivable Prepaid Rent Office Supplies Equipment Accum. Depre - Equip Accounts Payable Salaries Payable Unearned Revenue Williamson, Capital Unadjusted Adjustment Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 16370 16370 16370 16500 16500 16500 2530 130 2400 2400 1800 1200 600 600 29000 29000 29000 10000 350 10350 10350 6600 6600 6600 230 230 230 7200 3900 3300 3300 28000 28000 44390 3500 3500 20500 3900 24400 2600 Williamson, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense - Equip Supplies Expense Totals 230 130 350 1200 5810 2830 130 350 1200 72880 72300 72300 5810 72880 64870 64870

24400 Statement of Income For the period ending 31.12.2016 Service Revenue Less: Salaries Expense Rent Expense Depreciation Expense - Equip Supplies Expense Net Income 2830 130 350 1200 4510 19890 Statement of Owner's Equity For the period ending 31.12.2016 Williamson, Capital Add:Net Income 28000 19890 47890 -3500 44390 Less:Williamson, Withdrawals

Amounts in $ Amounts in $ Balance sheet As at 31.12.2016 Assets Current Assets Cash Accounts Receivable Prepaid Rent Office Supplies Amounts in $ Amounts in $ Liabilities Current Liabilities 16370 Accounts Payable 16500 Salaries Payable 2400 Unearned Revenue 600 35870 6600 230 3300 10130 Non Current Assets Equipment Accum. Depre - Equip Total Assets 29000 -10350 Owner's Equity 18650 Williamson, Capital 54520 Total Liabilities & Equity 44390 44390 54520 Current Ratio = Current Assets / Current Liabilities = 35870 / 10130 = 3.54