Question

Required Information (The following information applies to the questions displayed below.] Jaguar Auto Company provides general car maintenance to customers. The company's fiscal year-end is December 31. The December 31, 2018. trial balance (before any adjusting entries) appears below. Credits Debits $ 16,500 13.900 21.500 17,400 84.000 $ 26,500 10.900 Accounts Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Salaries Payable Utilities Payable Interest Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Depreciation Expense Insurance Expense Supplies Expense Utilities Expense Interest Expense 29.500 24.000 8.900 1.900 218.800 152,500 10.900 Totals $318.600 $318.600
6

Answer 1

Prepare Journal entries as follows:

Trn.	Account Titles	Debit	Credit
a	Depreciation Expense	$8,900
	Accumulated Depreciation-machine		$8,900
b	Salaries Expense	$2,900
	Salaries payable		$2,900
c	Interest expense	$1,180
	Interest payable ($29,500 × 12% × 4/12)		$1,180
d	Insurance expense	$14,500
	Prepaid insurance ($17,400 × 10/12)		$14,500
e	Supplies expense ($21,500 - $3,900)	$17,600
	Supplies		$17,600
f	Utilities expense	$1,650
	Utility payable		$1,650

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Prepare T-accounts as follows:

Depreciation Expense
Beg. Bal.	-
a	$8,900
End. Bal	$8,900
Accumulated depreciation-Machine
		Beg. Bal.	$26,500
		a	$8,900
		End. Bal	$35,400
Salaries expense
Beg. Bal.	$152,500
b	$2,900
End. Bal	$155,400
Salaries payable
		Beg. Bal.	-
		b	$2,900
		End. Bal	$2,900
Interest expense
Beg. Bal.	-
c	$1,180
End. Bal	$1,180
Interest payable
		Beg. Bal.	-
		c	$1,180
		End. Bal	$1,180
Insurance expense
Beg. Bal.	-
d	$14,500
End. Bal	$14,500
Insurance prepaid
Beg. Bal.	$17,400	d	$14,500
End. Bal	$2,900
Supplies
Beg. Bal.	$21,500	e	$17,600
End. Bal	$3,900
Supplies expense
Beg. Bal.	-
e	$17,600
End. Bal	$17,600
Utilities expense
Beg. Bal.	$10,900
f	$1,650
End. Bal	$12,550
Utilities payable
		Beg. Bal.	-
		f	$1,650
		End. Bal	$1,650

Cash
Beg. Bal.	$16,500
End. Bal	$16,500
Accounts receivable
Beg. Bal.	$13,900
End. Bal	$13,900
Equipment
Beg. Bal.	$84,000
End. Bal	$84,000
Accounts payable
		Beg. Bal.	$10,900
		End. Bal	$10,900
Note payable
		Beg. Bal.	$29,500
		End. Bal	$29,500
Retained Earnings
		Beg. Bal.	$8,900
		End. Bal	$8,900
Dividends
Beg. Bal.	$1,900
End. Bal	$1,900
Common stock
		Beg. Bal.	$24,000
		End. Bal	$24,000
Service revenue
		Beg. Bal.	$218,800
		End. Bal	$218,800

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Prepare Adjusted Trial balance as follows:

Adjusted Trial balance
Cash	$16,500
Accounts receivable	$13,900
Prepaid insurance	$2,900
Supplies	$3,900
Equipment	$84,000
Accumulated depreciation		$35,400
Accounts payable		$10,900
Salaries payable		$2,900
Utilities payable		$1,650
Interest payable		$1,180
Notes payable		$29,500
Common stock		$24,000
Retained earnings		$8,900
Dividend	$1,900
Service revenue		$218,800
Salaries expense	$155,400
Depreciation expense	$8,900
Insurance expense	$14,500
Supplies expense	$17,600
Interest expense	$1,180
Utilities expense	$12,550
Total	$333,230	$333,230

_________________________________________________________________________

Prepare Income statement as follows:

Income statement
Revenue:
Service revenue		$218,800
Less: Operating expense
Salaries expense	$155,400
Depreciation expense	$8,900
Insurance expense	$14,500
Supplies expense	$17,600
Interest expense	$1,180
Utilities expense	$12,550	$210,130
Net Income		$8,670