Question

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NAM Accelerated Delivery Services, Inc. Unajusted to balance 12/01/2019 QUIZ 2 - ACCT 2010 al 2020 Undjusted ACCT M CH OR 12,400 20,000 32,400 20,100 3015 3015 150 9000 36,000 34,000 207.000 1600 TOOD 14 000 247.000 52400 26758 205 24,700 32,400 12.000 8400 176.00 820 2450 Accounts Receivable Allowance for Collectible Acts Prepaid Mont Inventory Delivery Vehicles Accumulated Depreciation Accounts Payable Deferred Revenue Wages Payable Acore Interest Payable Utilities Payable Note Payable-Bank Western Due 4/23 Common Stock Retained Earnings Dividends Service Revenue Wages Expense Supplies Expense Interest Expense Fuel Expense Rent Expense Bad Debt Expense Depreciation Expense Utilities Expense 120,000 30,000 19.000 36,000 P40 451,600 214700 11.200 17.00 4100 17600 2450 1 2000 BOOOO Stocco 46000 292300 15300 ca 42000 9000 3015 205 2450 716623 683703 42.000 886 good 016 2058 ZAS 31.000 690,100 690,100 The followowing Items require adjustment as of 12/31/19 The Accounts Receivable Manager believes 15% of the outstanding receivables will be uncollectible REQUIRED: The interest on the Bank Western loan needs accrued - 4% outstanding since 5/1/19 and due 1/1/20 Prepare adjusting journal entries required for 12/31/19 11 days of emplyee wages @$1,600 per day need accrued Prepare Classified Balance Sheet as of 12/31/19 According to the billing manager, the deferred revenue balance should be $3,600 at 12/31/19 Prepare Income Statement for 2019 Depreciation on Delivery Vehicles needs recorded 10 yr life no salvage value put in place 1/1/18 Prepapre Statement of Shareholder's Equity for 2019 A physical count of supplies shows a year-end balance of $1,600 The company has an unpaid utility bill for December 2019 of $2,450 The company prepaid for 12 months of rent on 9/1/19 for $36,000, prepaid rent needs adjusted as of 12/31/19

Answer 1

1. Worksheet -

Accelerated Delievery Services, Inc. Worksheet 12/31/2019 Unadjusted Trial Adjusted Trial Adjustments Accounts Title Balance Balance Dr. Cr. Dr. Cr. Dr. Cr. Cash $ 32,400 $ 32,400 Accounts Receivable $ 20,100 $ 20,100 Allowance for doubtful accounts $ 3,015 $ 3,015 Supplies $ 5,700 $ 4,100 $ 1,600 Prepaid Rent $ 36,000 $ 12,000 $ 24,000 Inventory $ 14,000 $ 14,000 Delievery Vehicles $ 247,000 $ 247,000 Accumulated Depreciation $ 24,700 $ 24,700 $ 49,400 Accounts Payable $ 32,400 $ 32,400 Deferred Revenue $ 12,000 $ 8,400 $ 3,600 Wages Payable $ 17,600 $ 17,600 Accrued Interest Payable $ 3,200 $ 3,200 Utilities Payable $ 2,450 $ 2,450 Notes Payable - Bank Western Due $120,000 $120,000 Common Stock $ 30,000 $ 30,000 Retained Earnings $ 19,400 $ 19,400 Dividends $ 36,000 $ 36,000 Service Revenue $451,600 $ 8,400 $ 460,000 Wages Expense $ 214,700 $ 17,600 $ 232,300 Supplies Expenses $ 11,200 $ 4,100 $ 15,300 Interest Expenses $ 3,200 $ 3,200 Fuel Expenses $ 42,000 $ 42,000 Rent Expense $ 12,000 $ 12,000 Bad Debts Expense $ 3,015 $ 3,015 Depreciation Expense $ 24,700 $ 24,700 Utilities Expenses $ 31,000 $ 2,450 $ 33,450 Total $ 690,100 $ 690,100 $ 75,465 $ 75,465 $741,065 $ 741,065

2. Adjusting Entries -

Date Credit Accelerated Delievery Services, Inc. Adjusting Entries Accounts Title Debit Bad Debts Expense $ 3,015 Allowance for doubtful accounts (Being Bad debts Expense incurred) Dec 31 $ 3,015 $ 4,100 Dec 31 Supplies Expenses Supplies (Being Supplies Utilised) $ 4,100 Dec 31 Rent Expense $ 12,000 Prepaid Rent (Being 4 Months rent Expired) $ 12,000 Dec 31 Depreciation Expense $ 24,700 Accumulated Depreciation (Being depreciation expense incurred) $ 24,700 Dec 31 Wages Expense $ 17,600 Wages Payable (Being wages expense incurred) $ 17,600 Dec 31 Interest Expenses $ 3,200 Accrued Interest Payable (Being interest on loan incurred) $ 3,200 Dec 31 Utilities Expenses $ 2,450 Utilities Payable (Being utilities expense incurred) $ 2,450 $ 8,400 Dec 31 Deferred Revenue Service Revenue (Being revenue earned) $ 8,400

3. Income Statement -

Accelerated Delievery Services, Inc. Income Statement For the December 31, 2019 Service Revenue $ 460,000 Expenses: Wages Expense Supplies Expenses Interest Expenses Fuel Expenses Rent Expense Bad Debts Expense Depreciation Expense Utilities Expenses Total Expenses $ 232,300 $ 15,300 $ 3,200 $ 42,000 $ 12,000 $ 3,015 $ 24,700 $ 33,450 $365,965 Net Income $ 94,035

4. Statement of Shareholder's Equity -

Accelerated Delievery Services, Inc. Statement of Shareholder's Equity For the December 31, 2019 Common Stock $ 30,000 Retained Earnings $ 19,400 Add: Net Income $ 94,035 Less: Dividends $ (36,000) $ 77,435 Total Shareholder's Equity $ 107,435

5. Balance Sheet -

Accelerated Delievery Services, Inc. Balance Sheet For the December 31, 2019 Assets: Cash $ 32,400 Accounts Receivable $ 20,100 Allowance for doubtful accounts $ (3,015) $ 17,085 Supplies $ 1,600 Prepaid Rent $ 24,000 Inventory $ 14,000 Delievery Vehicles $ 247,000 Accumulated Depreciation $ (49,400) $ 197,600 Total Assets $286,685 Liabilities: Accounts Payable Deferred Revenue Wages Payable Accrued Interest Payable Utilities Payable Notes Payable - Bank Western Due Total Liabilities $ 32,400 $ 3,600 $ 17,600 $ 3,200 $ 2,450 $ 120,000 $ 179,250 Shareholders Equity: Common Stock Retained Earnings Total Shareholders Equity $ 30,000 $ 77,435 $ 107,435 Total Liabilities and Shareholder's Equity $ 286,685