Question

Calibri (Cuer... 11 А. А Ajustar texto Pegar NK S - Combinar y centrar 037 fx A в C D G H EC Company 2 Trial Balance 3 Adjustments Adjusted Trial Balance 4 Debits Credits Debits Credits Debit Credit 5 Cash 5 6 Accounts Receivable 25 7 Supplies 20 & Equipment 60 9 Accumluated Depreciation 15 10 Accounts Payable 10 11 Wage Payable 12 Capital Stock 25 13 Retained Earning 10 14 Revenues 60 15 Utility Expense 2 16 Wages Expense 8 17 Supplies Expense 18 Depreciation Expense 19 20 1. Ending inventory of supplies is $12. Make the adjusting journal entry to record 21 the supplies used 22 23 24 25 2. Depreciation of the equipment for the year is $5. Make the adjusting entry 26 27 29. Wages accrued at the end of the accounting period is $7. Make the adjusting entry 30 31 32 33 4. Using the information in the adjusting entries as well as the information in the trial 34 balance calculate the net income for the period. 35 36 385 Alter adjusting entries what is the book value of the equipment? How old is the equipment? 39 40 41 42. Is the company in the first year of operations? Why? What is the ending balance in Retained Earnings? 4 Adjusting Process Solution James Co. James Co. Solution E.C. Company E.C. Company esc 80 SRB

Answer 1

	1	ENDING INVENTORY OF SUPPLIES $12
		Account Titles and Explanations	Debit	Credit
		Supplies expenses	$8		(20-12)
		Supplies		$8
		(To record supplies expenses)
	2	DEPRECIATION OF EQUIPMENT $55
		Account Titles and Explanations	Debit	Credit
		Depreciation expenses-Equipment	$5
		Accumulated Depreciation-Equipment		$5
		(To record depreciation expenses)
	3	WAGES ACCRUED $7
		Account Titles and Explanations	Debit	Credit
		Wages expenses	$7
		Wages Payable		$7
		(To record wages expenses)
	4	NET INCOME
		Revenue		$60
		Utilities expenses	$2
		Wage expenses	$15		(8+7)
		Supplies expenses	$8
		Depreciation expenses	$5
		Total Expenses		$30
		Net Income		$30
	5	BOOK VALUE OF EQUIPMENT
		Equipment (at Cost)	$60
		Less:Accumulated Depreciation	$20	(15+5)
		BOOK VALUE OF EQUIPMENT	$40
		Annual Depreciation	$5
		Equipment is (20/5)=4 Years Old
	6	The company is not in first year of operation
		It has beginning balance in retained earnings
		Ending Balance in Retained Earnings	$40	(10+30)