Question

1.prepare a complete worksheet

2. prepare a classified balance sheet

3. journaliza the adjusting entries

Problem 3-12 Wildhorse Company has a fiscal year ending on September 30. Selected data from the September 30 worksheet are presented below. WILDHORSE COMPANY Worksheet For The Month Ended September 30, 2020 Adjusted Trial Trial Balance Balance Debit Credit Debit Credit Cash 39,760 39,760 Supplies 20,960 4,161 Prepaid Insurance 31,900 4,265 Land 87,720 87,720 Equipment 127,720 127,720 Accumulated Depreciation-Equipment 38,560 40,850 Accounts Payable 16,960 16,960 Unearned Service Revenue 3,310 655 Mortgage Payable 54,720 54,720 Common Stock 117,420 117,420 Retained Earnings, Sept. 1, 2020 2,000 Dividends 14,000 14,000 Service Revenue 284,220 286,875 Salaries and Wages Expense 108,390 108,390 Maintenance and Repairs Expense 32,860 32,860 Advertising Expense 9,400 9,400 Utilities Expenses 19,260 19,260 Property Tax Expense 18,610 22,250 Interest Expense 6,610 10,950 Totals 517,190 515,190 Insurance Expense 27,635 Supplies Expense 16,799 Interest Payable 4,340 Depreciation Expense 2,290 Property Tax Payable 3,640 Totals 527,460 527,460 2,000

Answer 1

1) Complete Work Sheet

Wildhorse Company
Worksheet
For the Month Ended September 30, 2020
Account tittle	Trial Balance		Adjustment		Adj. Trial Balance		Income Statement		Balance Sheeet
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$   39,760				$     39,760				$     39,760
Supplies	$   20,960				$       4,161				$       4,161
Prepaid Insurance	$   31,900				$       4,265				$       4,265
Land	$   87,720				$     87,720				$     87,720
Equipment	$ 127,720				$   127,720				$   127,720
Acc. Depreciation-equipment		$   38,560		$   2,290		$    40,850			$    (40,850)
Account Payable		$   16,960				$    16,960				$     16,960
Unearned Service Revenue		$     3,310	$   2,655			$         655				$          655
Mortgage Payable		$   54,720				$    54,720				$     54,720
Common Stock		$ 117,420				$ 117,420				$   117,420
Retained Earning, Sept. 1, 2020		$     2,000				$      2,000				$       2,000
Dividend	$   14,000				$     14,000					$   (14,000)
Service Revenue		$ 284,220		$   2,655		$ 286,875		$ 286,875
Salaries & Wage Expense	$ 108,390				$   108,390		$ 108,390
Maintenance & Repair Expense	$   32,860				$     32,860		$    32,860
Advertising Expense	$     9,400				$       9,400		$      9,400
Utilities Expense	$   19,260				$     19,260		$    19,260
Property Tax Expense	$   18,610		$   3,640		$     22,250		$    22,250
Interest Expense	$     6,610		$   4,340		$     10,950		$    10,950
Total	$ 517,190	$ 517,190
Insurance Expense			$ 27,635		$     27,635		$    27,635
Supplies Expense			$ 16,799		$     16,799		$    16,799
Interest Payable				$   4,340		$      4,340				$       4,340
Depreciation Expense			$   2,290		$       2,290		$      2,290
Property Tax Payable				$   3,640		$      3,640				$       3,640
Total			$ 57,359	$ 12,925	$   527,460	$ 527,460
Net Income							$    37,041			$     37,041
Total							$ 286,875	$ 286,875	$   222,776	222776

2) Classified Balance Sheet

Wildhorse Company
Balance Sheet
For the Month Ended September 30, 2020
Assets
Current Assets:
Cash	$     39,760
Supplies	$       4,161
Prepaid Insurance	$       4,265
Total Current Assets		$    48,186
Non Current Assets:
Land	$     87,720
Equipment	$   127,720
Accumulated Depreciation-equipment	$   (40,850)
Total Non Current Assets		$ 174,590
Total Assets		$ 222,776
Liabilities and Stockholders' Equity
Current Liabilities:
Account Payable	$     16,960
Unearned Service Revenue	$          655
Interest Payable	$       4,340
Property Tax Payable	$       3,640
Mortgage Payable	$     10,000
Total Current Liabilities		$    35,595
Non Current Liabilities
Mortgage Payable		$    44,720
Total Liabilities:		$    80,315
Stockholders' Equity:
Common Stock		$ 117,420
Retained Earning:
Beg. Balance	$       2,000
Net Income	$     37,041
Dividend	$   (14,000)	$    25,041
Total Liabilities & Stockholders' Equity		$ 222,776

3) Adjusted Journal Entries:

Account Tittle	Debit	Credit
Depreciation Expense	$ 2,290
Acc. Depreciation-equipment
Unearned Service Revenue	$     2,655
Service Revenue		$     2,655
Interest Expense	$ 4,340
Interest Payable		$ 4,340
Property Tax Expense	$ 3,640
Property Tax Payable		$ 3,640