Question

Required information The general ledger of Zips Storage at January 1, 2021, includes the following account balances: Credits Debits $ 26,600 17,400 16,000 168,000 Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Totals $ 8,700 7,800 163,000 48,500 $228,000 $ 228,000 The following is a summary of the transactions for the year: 1. January 9 Provide storage services for cash, $154,100, and on account, $62,200. 2. February 12 Collect on accounts receivable, $53,500. 3. April 25 Receive cash in advance from customers, $14,900. 4. May 6 Purchase supplies on account, $13,200. 5. July 15 Pay property taxes, $10,500. 6. September 10 Pay on accounts payable, $13,400. 7. October 31 Pay salaries, $143,600. 8. November 20 Issue shares of common stock in exchange for $47,000 cash. 9. December 30 Pay $4,800 cash dividends to stockholders. 5. Record adjusting entries. Insurance expired during the year is $9,000. Supplies remaining on hand at the end of the year equal $4,900. Provide services of $13,800 related to cash paid in advance by customers. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No General Journal Debit Credit Transaction December 31 1 2 December 31 December 31

Answer 1

Solution: Adjusting journal entries:

No. Credit Date Accounts Title 1 Dec. 31 Insurance expense Prepaid Insurance Debit $ 9,000 $ 9,000 8,300 2 Dec. 31 Supplies expense Supplies $ 8,300 $ 13,800 3 Dec. 31 Deferred revenue Service revenue $ 13,800

Adjusted Trial Balance:

Credit Adjusted Trial Balance 31-Dec-21 Accounts Debit Cash 123,800 Accounts receivable 26,100 Prepaid Insurance 7,000 Supplies 4,900 Land 168,000 Accounts payable Deferred revenue Common stock Retained Earnings Dividends 4,800 Insurance expense 9,000 Supplies expense 8,300 Service revenue Property taxes 10,500 Salaries expense 143,600 Total $ 506,000 8,500 8,900 210,000 48,500 230,100 $ 506,000

Note: If you have any query, ask me in the comment section. Give vote ups (ratings) please !!!