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Question: Option #1: Preparing Adjusting Entries in a Worksheet Following is the unadjusted trial balance o......

Question: Option #1: Preparing Adjusting Entries in a Worksheet Following is the unadjusted trial balance o... Option #1: Preparing Adjusting Entries in a Worksheet Following is the unadjusted trial balance of Skylar Gaming, Inc. at the end of its first year of operations, December 31, 20x7: Account Name DR. CR. Cash $71,550 Accounts Receivable $25,200 Supplies $550 Prepaid Insurance $12,000 Equipment $31,750 Accumulated Depreciation-Equipment $4,050 Accounts Payable $6,700 Salaries Payable $0 Unearned Revenue $2,200 Common Stock $45,700 Retained Earnings $23,850 Dividends $3,500 Revenue $80,750 Depreciation Expense-Equipment $2,000 Salaries Expense $4,750 Insurance Expense $3,100 Rent Expense $4,200 Supplies Expense $2,500 Utilities Expense $2,150 $163,250 $163,250 The following additional information is available: Skylar Gaming, Inc. needs to accrue $2,000 in salaries that will not be paid until next month. Skylar Gaming, Inc. has earned $2,000 of the services that were paid for in advance as included in the unearned revenue account. At the end of the period, Skylar Gaming, Inc. has provided services in the amount of $500 to another customer (John Gartner). However, Skylar has not billed them yet since they only issue bills at the beginning of each month. Skylar Gaming, Inc. needs to record the annual $1,025 of depreciation on the equipment. One month of the 12-month insurance policy in prepaid insurance has been used up, and a journal entry is needed to reflect this. At the end of the period, $125 in supplies are remaining. Required: Prepare all necessary adjusting entries at December 31, 20x7 Descriptions are not needed. Using the below linked template prepare an adjusted trial balance at December 31, 20x7. Using a worksheet template, prepare an income statement, statement of retained earnings, and a balance sheet. Prepare closing entries including descriptions.

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General Journal Debit Credit Salaries and Wages Expense Salaries and Wages Expense Payable 2,000 2,000 Unearned Revenue 2,000 Revenue 2,000 Accounts Receivable 500 Revenue 500 Depreciation Expense Accumulated Depreciation- Equipmen 1,025 1,025 Insurance 1,000 Prepaid Insurance 1,000 425 SupplieExpense Supplies 425 Adjusted Trial Balance Accounts Payable 6,700 25,700 125 11,000 Accounts Receivable Supplies Prepaid Insurance Accumulated 5,075 Depreciation-Equipment Common Stock Cash Depreciation Expense Dividends Equipment 45,700 71,550 3,025 3,500 31,750 2,150 Utilities Expense Income Taxes Payable Rent Expense 4,200 4,100 2,925 Insurance Supplies Expense Retained Earnings Salaries and Wages Expense 23,850 6,750 83,250 2,000 200 166,775 Revenue Salaries and Wages Expense Payable Unearned Revenu Total 166,775

Income Statement Revenue Expenses: Salaries and Wages Expense Supplies Expense Rent Expense Depreciation Expense Insurance Utilities Expense Total Expense Net Income 83,250 6,750 2,925 4,200 3,025 4,100 2,150 23,150 60,100 Statement Of Retained Earnin Beginning Balance Add: Net Income Less: Dividends Ending Balance 23,850 60,100 3,500 80,450 a. Closing Entries Date General Journal bit Credit Revenue Income Summa (To close revenue account) 83,250 83,250 Income Summa 18,075 Salaries and Wages Expense Rent Expense Depreciation Expense 6,750 4,200 3,025 4,100 Insurance (To close expense Account) Income Summa Retained Earnings To close Income summary account) 65,175 65,175 Retained Earnings Dividend (To record Dividend) 3,500 3,500

Post Closing Trial Balance Debits Credits 6,700 Accounts Payable Salaries and Wages Expense Payable Accounts Receivable Suppl

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