Question

#6,7,8

Comple P4-31A Completing the accounting cycle from adiusting entries to post-closing trial balance with an optional worksheet The unadjusted trial balance of Williamson Anvils at December 31, 2016, and the data for the adjustments follow: WILLIAMSON ANVILS Unadjusted Trial Balance December 31, 2016 Balance Debit Credit $ 16,370 16,500 2.530 1,800 29,000 5 10,000 6,600 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 Supplies Expense Total 7,200 28,000 3,500 20,500 2,600 $ 72,300 $ 72,300 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.

Answer 1

Closing Entries

Accounts	debit	credit
Service revenue	$                   24,400
Income summary		$          24,400
Income summary	4510
Salaries expense		$             2,830
Rent expense		$                130
Depriciation Expense - equipment		$                350
Supplies expense		$             1,200
Income summary	$                   19,890
Williamson capital		$          19,890
Williamson capital	$                     3,500
Williamson withdrawals		$             3,500

Post closing trial balance

Post closing trial balance
Cash	$        16,370
Accounts receivable	$        16,500
Prepaid rent	$          2,400
Office supplies	$              600
Equipment	$        29,000
Accumulated depriciation - equipment		$                     10,350
Accounts Payable		$                        6,600
Salaries payable		$                           230
Unearned revenue		$                        3,300
Williamson capital		$                     44,390
Total	$        64,870	$                     64,870

Current Ratio

Cash	16370
Accounts receivable	16500
Prepaid rent	2400
Office supplies	600
Total current assets(a)		$      35,870
Current Liabilities
Accounts Payable	6600
Salaries payable	230
Unearned revenue	3300
Total current Liabilities(b)		$      10,130
Current Ratio (a/b)		3.54

Ledgers

Clos. Clos. Income Summary 4,510 24,400 19,890 19,890 0 Clos. Bal. Bal. Office Supplies 1,800 1,200 Bal. Adj. Service Revenue 20,500 3,900 24,400 24,400 Clos. Bal. Adj. Bal. Bal. Bal. 600 Equipment 29,000 Bal. Bal. Adj. Bal. Bal. Salaries Expense 2,600 230 2,830 2,830 Clos. Bal. 29,000 Rent Expense Accumulated Depreciation-Equip. 10,000 350 Adj. 0 Bal. Bal. Adj. 130 130 130 Clos Bal. Bal. 10,350 Bal. 0 Accounts Payable 6,600 Bal. Depreciation Expense-Equip. Bal. 350 Bal. 350 350 Clos. Bal. 01 Adj. 6,600 Bal. Salaries Payable Supplies Expense 230 Bal. Adj. Bal. Adj. Bal. 1,200 1,2001,200 01 Clos. | 230 Bal. Bal. Unearned Revenue 7,200 3,900 Bal. Adj.