Question

P3-55. Preparing Accounting Adjustments Wysocki Wheels began operations on March 1 to provide automotive wheel alignment and balancing services. On March 31, accounting records revealed the following account balances.

Answer 1

1. ACCOUNTING ADJUSTMENTS
Date	Particulars	Debit	Credit
1	Rent expense	795
	Prepaid rent		795
	(Being expense recognised)
2	Supplies expense	2340
	Supplies		2340
	(Being expense recognised)
3	Depreciation exp	335
	Accumulated dep		335
	(Being dep for 1 month)
4	wages expense	1560
	Wages payable		1560
	(Being expense recognised)
5	Utility expense	390
	Utility expense payable		390
	(Being expense recognised)
6	Unearned revenue	500
	Service revenue		500
	(Being revenue recorded)
C- Closing entries
1	P&L account	795
	Rent expense		795
2	P&L account	2340
	Supplies expense		2340
3	P&L account	335
	Depreciation exp		335
4	P&L account	1560
	Wages expense		1560
5	P&L account	390
	Utilities expense		390
6	Service revenue	500
	P&L		500

M N 0 P Q R S T U G H b and d-T Accounts- Accounting adjustments and closing entries Cash Beg bal 2900 Ending 2900 ending Common stock 38400 Beg Wages payable 1560 exp 384001 ending 1560 Accounts receivable 3820 Ending Utility expense 390 P&L Beg bal 3820 Service revenue 12860 beg unearned P&L payable 390 12360 500 Prepaid rent Beg bal 4770 Rent exp Utility expense payable ending 390 exp 3901 795 3975 ending Wages expense 3900 P&L 15601 Beg payable 5460 Unearned service revenue revenue 500 beg 1000 Beg bal Supplies 3700 Exp ending 2340 1360 Rent expense 795 P&L Prepaid rent 795 Equipment 36180 ending Supplies expense 2340 P&L Beg bal Supplies 2340 36180 Depreciation expense 335 P&L Acc dep 335 Accounts payable 3510 Beg ending 3510 Accumulated depreciation Ending 335 Exp 335