Question

If you could please Answer question B under the required section

Paste B I U $ % ) 4.0 .00 .00 →.0 1 Editing E Cell Styles Ti Format 16 fx A B с D E F G H ] L M N o р 1 The Carlisle Condominiums opened for business on October 1, 2020. Here is its trial balance before adjustment on October 31. 2 3 4 11 12 13 17 Carlisle Condominiums 5 Trial Balance 6 6 October 31, 2020 7 Dr. Cr. 8 8 Cash 8 12,500 9 Supplies 13,000 10 Prepaid Insurance 9,000 Land 75,000 Buildings 350,000 Equipment 84,000 14 Accounts payable 23,500 15 Unearned rent revenue 16,500 16 Mortgage payable 180,000 Common stock 300,000 18 Rent revenue 45,000 19 Salaries and wages expense 15,000 20 Utilities expense 4,000 21 Advertising expense 2,500 22 565.000 565.000 23 24 Additional information: 25 1. The two-year insurance policy was aquired 10/1/20. 26 2. A count of supplies shows $5,250 of unused supplies on October 31 27 3. Annual depreciation is $18,000 on the building and $15,000 on equipment 28 4. The mortgage interest rate is 6%. (The mortgage was taken out on October 1.) 29 5. $12,500 of rent that was unearned on October 1 has been earned by October 31 30 6. Salaries of $4,500 earned in October remain unpaid at October 31 31 32 Required: 33 34 b. Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. 35 36 37 38 39 40

Answer 1

Adjusting Entries: CREDIT EVENT 1) DATE Oct. 31 DEBIT $375 ($9,000 x (1/24) --> 1 month's insurance out of 24 months (2 years) expired] $375 2) Oct. 31 $7,750 ($13000 - $5250] $7,750 3a) Oct. 31 $1,500 ($18,000 X (1/12) --> One month's depreciation] $1,500 3b) Oct. 31 ACCOUNT TITLES Insurance Expense Prepaid Insurance Supplies Expense Supplies Depreciation Expense - Building Accumulative Depreciation - Building Depreciation Expense - Equipment Accumulative Depreciation - Equipment Interest Expense Interest Payable Unearned Rent Revenue Rent Revenue Salaries and Wages Expense Salaries and Wages Payable $1,250 ($15,000 X (1/12) --> One month's depreciation] $1,250 4) Oct. 31 $900 [$180,000 x 6% x (1/12) -->One month's interest expense accrued] $900 5) Oct. 31 $12,500 [Given] $12,500 6) Oct. 31 $4,500 [Given] $4,500

T-Accounts: Unadj. bal. Adj. bal. Cash $12,500 $12,500 Accumulated Depreciation - Buildings Unadj. bal. $0 3a) $1,500 Adj. bal. $1,500 Salaries and Wges Payable Unadj. bal. $0 6) $4,500 Adj. bal. $4,500 Supplies $13,0002) $5,250 Unadj. bal. Adj. bal. $7,750 Unadj. bal. Adj. bal. Equipment $84,000 $84,000 Interest Payable 4) Adj. bal. $900 $900 Prepaid Insurance $9,0001) $8,625 Unadj. bal. Adj. bal. $375 Accumulated Depreciation - Equipment Unadj. bal. $0 3b) $1,250 Adj. bal. $1,250 Mortgage Payable Unadj. bal. $180,000 $180,000 Adj. bal. Unadj. bal. Adj. bal. Land $75,000 $75,000 Accounts Payable Unadj. bal. Common Stock Unadj. bal. $300,000 Adj. bal. $300,000 $23,500 $23,500 Adj. bal. Unadj. bal. Buildings $350,000 $350,000 Adj. bal. Unearned Rent Revenue $12,500 Unadj. bal. Rent Revenue Unadj. bal. 5) Adj. bal. 5) $16,500 $4,000 $45,000 $12,500 $57,500 Adj. bal.

Unadj. bal. 6) Adj. bal. Salaries and Wages Expense $15,000 $4,500 $19,500 2) Adj. bal. Supplies Expense $7,750 $7,750 Utilities Expense $4,000 $4,000 1) Adj. bal. Insurance Expense $375 $375 Unadj. bal. Adj. bal. Unadj. bal. Adj. bal. Advertising Expense $2,500 $2,500 3a) Adj. bal. Depreciation Expense-Building $1,250 $1,250 3b) Depreciation Expense-Equipment $2,500 $2,500 Adj. bal.