Question

Everly Company Unadjusted Trial Balance December 31, 2018 106,000 28,000 7,500 30,000 110,000 15,000 80,000 Cash Accounts Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total 46,000 8,000 17,900 12,500 50,000 46,000 47,600 5,000 465,500 12,000 45,000 2,000 48,000 10,000 143,000 14,000 3,000 35,000 693,500 693,500 Part 1: Prepare adjusting journal entries using the unadjusted trial balance provided to you in Question 1 of the Financial Statement Homework quiz on D2L and the Page 1 of 9

Answer 1

486,400 486,400 Everly Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $ 106,000 Accounts Receivable $ 36,000 Supplies $ 4,000 Prepaid Insurance $ 20,000 Inventory $ 110,000 Vehicle $ 15,000 Equipment $ 80,000 Accumulated Depreciation $ 61,000 Accounts payable $ 8,000 Unearned Revenue $ 5,000 Wages Payable $ 20,500 Long-Term Notes Payable $ 50,000 Common Stock $ 46,000 Retained Earnings $ 47,600 Dividends $ 5,000 Service Revenue $ 486,400 Repair Expense $ 12,000 Delivery Expense $ 45,000 Depreciation Expense $ 17,000 Rent Expense $ 48,000 Insurance Expense $ 20,000 Wages Expense $ 151,000 Supplies Expense $ 17,500 Interest Expense $ 3,000 Income Tax Expense $ 35,000 Totals $ 724,500 $ 724,500 Everly Company Income Statements For the months ended Dec 31,2018 Revenue: Service Revenue $ Total Revenue $ Less:Expenses: Repair Expense $ 12,000 Delivery Expense $ 45,000 Depreciation Expense $ 17,000 Rent Expense $ 48,000 Insurance Expense $ 20,000 Wages Expense $ 151,000 Supplies Expense $ 17,500 Interest Expense $ 3,000 Income Tax Expense $ 35,000 Total Expenses $ Net Income $ 348,500 137,900

486,400 486,400 Everly Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $ 106,000 Accounts Receivable $ 36,000 Supplies $ 4,000 Prepaid Insurance $ 20,000 Inventory $ 110,000 Vehicle $ 15,000 Equipment $ 80,000 Accumulated Depreciation $ 61,000 Accounts payable $ 8,000 Unearned Revenue $ 5,000 Wages Payable $ 20,500 Long-Term Notes Payable $ 50,000 Common Stock $ 46,000 Retained Earnings $ 47,600 Dividends $ 5,000 Service Revenue $ 486,400 Repair Expense $ 12,000 Delivery Expense $ 45,000 Depreciation Expense $ 17,000 Rent Expense $ 48,000 Insurance Expense $ 20,000 Wages Expense $ 151,000 Supplies Expense $ 17,500 Interest Expense $ 3,000 Income Tax Expense $ 35,000 Totals $ 724,500 $ 724,500 Everly Company Income Statements For the months ended Dec 31,2018 Revenue: Service Revenue $ Total Revenue $ Less:Expenses: Repair Expense $ 12,000 Delivery Expense $ 45,000 Depreciation Expense $ 17,000 Rent Expense $ 48,000 Insurance Expense $ 20,000 Wages Expense $ 151,000 Supplies Expense $ 17,500 Interest Expense $ 3,000 Income Tax Expense $ 35,000 Total Expenses $ Net Income $ 348,500 137,900

$ 46,000 Everly Company Statement of Stockholders Equity For the months ended Dec 31, 2018 Common Stock Add: Retained Earnings: Beginning balance $ 47,600 Add: Net Income $ 137,900 Less: Dividends $ 5,000 Ending balance of Retained Earnings Total Stockholders' Equity 106,000 36,000 4,000 20,000 110,000 $ 180,500 $226,500 $ 276,000 15,000 19,000 Everly Company Balance sheet Dec 31,2018 Assets: Current Assets Cash $ Accounts Receivable $ Supplies $ Prepaid Insurance $ Inventory $ Total Current Assets Property plant and Equipment Vehicle $ Equipment $ 80,000 Less:Accumulated Depreciation-Equipment $ 61,000 Book Value-Equipment $ Total Property plant and Equipment Total Assets Liabilities and Stockholders Equity Current Liabilities Accounts payable $ Unearned Revenue $ Wages Payable $ Total Current Liabilities Long-term Liabilities Long-Term Notes Payable Total Liabilities Stockholders' Equity: Common Stock $ Retained Earnings $ Total Stockholders' equity Total Liabilities and Stockholders' Equity $ $ 34,000 310,000 8,000 5,000 20,500 $ 33,500 $ $ 50,000 83,500 46,000 180,500 $ 226,500 310,000 $

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