Question

accounting 200

financial statement homework #1

Graves Company Unadjusted Trial Balance December 31, 2018 116,000 30,000 6,000 18,000 110,600 15,000 75,000 Cash Accounts Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total 40,000 9,000 13,500 11,500 48,000 41,000 37,600 5,000 472,000 14,000 38,000 15,000 38,000 9,000 141,000 8,000 2,000 32,000 672,600 672,600

Answer 1

Part 1 - Answer

Journal Entries
Date	Head of Account	Debit	Credit
Dec-31	Insurance	6000
	To Prepaid Insurance		6000
	Insurance for Sep to Dec debited , balance is Prepaid Insurance
Dec-31	Depreciation	15000
	To Accumulated Depreciation		15000
	Additional depreciation
Dec-31	Wages	8000
	To Wages Payable		8000
	Outstading wages for 8000 provided
Dec-31	Unearned Revenue	12900
	To Service Revenue		12900
	Revenue of $ 12900 charged
Dec-31	Accounts Receivables	8000
	To Service Revenue		8000
	Additional revenue accounted for
Dec-31	Supplies expenses	2000
	To Supply		2000
	Consumption entry for $ 2000 passed

Part 2 - Answer

Prepaid Insurance Account
Particulars	Debit	Particulars	Credit
To Balance b/d	18000	By Insurance	6000
		By Balance c/d	12000
	18000		18000
Insurance Account
Particulars	Debit	Particulars	Credit
To balance b/d	9000
TO Prepaid Insuranc	6000	By Balance c/d	15000
	15000		15000
Depreciation
Particulars	Debit	Particulars	Credit
To balance b/d	15000
To Acc dep	15000	By balance b/d	30000
	30000		30000
Wages
Particulars	Debit	Particulars	Credit
To balance b/d	141000
To Wages payable	8000	By balance c/d	149000
	149000		149000
Accumulated Depreciation
Particulars	Debit	Particulars	Credit
		By Balance b/d	40000
To balance c/d	55000	By Depreciation	15000
	55000		55000
Wages Payable
Particulars	Debit	Particulars	Credit
		By balance b/d	11500
To balance c/d	19500	By Wages	8000
	19500		19500
Unearned Revenue
Particulars	Debit	Particulars	Credit
To Revenue	12900	By balance b/d	13500
To balance c/d	600
	13500		13500
Service Revenue
Particulars	Debit	Particulars	Credit
		By balance b/d	472000
		By Unearned revenue	12900
To balance c/d	492900	By Account receivables	8000
	492900		492900
Supply Expenses
Particulars	Debit	Particulars	Credit
To balance b/d	8000
To Supply	2000
		By balance c/d	10000
	10000		10000
Supply
Particulars	Debit	Particulars	Credit
To balance b/d	6000	By Supply expenses	2000
		By balance c/d	4000
	6000		6000
Account receivables
Particulars	Debit	Particulars	Credit
To balance b/d	30000
To Revenue	8000
		By balance c/d	38000
	38000		38000
Retained Earnings
Particulars	Debit	Particulars	Credit
To P& L - Supply exps	2000	By balance b/d	37600
To wages	8000	By revenue	8000
To Depreciation	15000	By Unearned revenue	12900
To Insurance	6000
To balance c/d	27500
	58500		58500

Part 3 - Answer

Groves Company
Adjusted Trial Balance as on 31.12.18
Heads	Debit	Credit
Cash	116000
Accounts Receivable	38000
Supplies	4000
Prepaid Insurance	12000
Inventory	110600
Vehicle	15000
Equipment	75000
Accumulated depreciation		55000
Accounts payable		9000
Unearned revenue		600
Wages payable		19500
Long term notes payable		48000
Common stock		41000
Retained Earnings 01.01.18		27500
Dividends	5000
Service revenue		492900
Repair Expense	14000
Delivery expenses	38000
Depreciation expenses	30000
Rent Expense	38000
Insurance Expense	15000
Wages Expenses	149000
Supplies Expense	10000
Interest expense	2000
Income tax expense	32000
Total	703600	693500

There was a difference of 10100 in TB - time fell short . Please ignore