Question

Below is the following unadjusted trial balance and additional data are for Sundried Company as of December 31, 2020: CREDIT DEBIT Cash 34,000 Accounts Reciauable 3.570 Supplies on hand 1,590 Prepaid rent 26.040 Equipment 94,500 Accumulated Depreciation Accounts Payable Capital stuck Retained Earning Jan. 1,2020 Dividends 4.000 Commissions Revenue Salaries Expense Misc. Expense 1,170 TOTALS 355.200 17,600 30.6.00 40,000 21.000 240,000 190, 330 355,200 Here is some of the information needed for the adjustment to 1. The prepaid rent shown on the trial balance if for the six-month perrod from November 1, 2020 to April 30, 2020 2. The equipment now purchased in a previous year, had an estimated life of loyrs at the time of purchase has an expected salvage value of $5,000 and is being depreciated using the Straight-line method. 3. Salaries earned by employees the last few days of 2020 but unpaid as of Dec. 31, 2020 amount to $1,400.

Answer 1

Sundried Company Worksheet For the period ending 31.12.2020 Adjusting Enteries Trans. Particulars 1 Rent Expense Prepaid Rent (Rent expired) 26040 x 2/6 Debit in $ Credit in $ 8680 8680 2 Depreciation Expense 8950 Accum. Depre. -Equip (To record depreciation) (94500 - 5000 ) / 10 8950 3 1400 Salaries expense Salaries Payable (Salary Expense accrued) 1400 Particulars Cash Accounts Receivable Supplies on Hand Prepaid Rent Equipment Accum. Depre. -Equip Accounts Payable Salaries Payable Capital Stock Retained Earnings Dividends Commission Revenue Salaries Expense Miscellaneous Expense Rent Expense Depreciation Expense Supplies expense Totals Unadjusted Adjustments Adjusted Income Statement Balance sheet Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 34000 34000 34000 3570 3570 3570 1590 900 690 690 26040 8680 17360 17360 94500 94500 94500 17600 8950 26550 26550 30600 30600 30600 1400 1400 1400 40000 40000 40000 21000 21000 21000 4000 4000 4000 246000 246000 246000 190330 1400 191730 191730 1170 1170 1170 8680 8680 8680 8950 8950 8950 900 900 900 355200 355200 19930 19930 365550 365550 211430 246000 154120 119550 4 900 Supplies expense Supplies (Supplies Expensed) 1590 - 690 900 34570 34570 Net Income Totals 246000 246000 154120 154120