Question

Problem 2 Chapters 2-3 Cumberland City Cycles, Incorporated (CCC) rents bicycles of all kinds for use on the biking paths up and down the Cumberland River. . The Excel file, Problem 2 Excel Template, includes tabs for: The Unadjusted Trial Balance, T-accounts, with the unadjusted amounts, • An outline for the Adjusted Trial Balance, An automatically filled set of financial statements. Review the tabs carefully. The Adjusted Trial Balance is equal to the Unadjusted Trial Balance at this point-no adjusting entries have been made. The financial statements are complete- with amounts before adjustments. Note that Net Income is $3,050 now. Watch what happens as you enter the adjusting entries. Below are the necessary adjusting entries that are to be recorded. ALL adjustments are made on an annual basis each December 31. Using the information below, and the amounts on the Unadjusted Trial Balance, prepare the adjusting entries in the T-accounts on the Excel spreadsheet. (A journal page is provided on the following page if you prefer to make the entries in general journal form first and then put into the T-accounts.) Round all amounts to whole dollars.

Answer 1

classmate Dale Poolase adiantwort erlores as follows: skede Supues ellers supones [from the Rent expense C Insurance Expense ($1200/2)* months $1,000 Deldecoton eylense Accumulated depreciation (($10,000 -- fross) la yesor] un earned revenue Rental revenue Interest expense Interest Payable (coooo ya% * 5/12]

Date Page Doelare In accounts as follows: Supovies $4000 Adi a 4800 Adid $ 1.000 $200 and Bal $1,000. Supplies expense $860 Prepaid insatione $1,200 Adj. d) $ hool End.Ral Adj. Bal $2,000 Depreciation expense Ront axpanse $150o Adid) Poopaid dant $3.000 Adj. b) $ 1500 Accumulated Deprecation tisoo End Bal $1000 anearred revenue $4oo Bal. $400 Adive) Rental devenue Bal $10,200 Adj o $400 AS .Ral $11.40 Interest expense $325 Interest Payable Adj f $375 End Bal $375

classmate Date Page poslate income statement as follows: Income statement Revenue. Render Revolles (f 10.400 $4007 $11.100 Expenses : Salaries expense Adurdusing pypende latilities expense Insurance expense Rent expense Supplies expense Depreciation expense Interest expense Total expense susoo $12385 Net loss ($1,225) statement of detained earnings Beg Bal cess! lesst Dividends ( 9 ($102) 2850o)

Data Page Balance shoot Assets. cash Accounts receivables Suppies prepaid Rent ($3000 - $1500) Prepaid Catone 31200- StocoJ Equement $ 10.000 Accumulated depreciation (84000) $ lisoo $200 Total Assets $147150 Ciabilites Accounts payable uneathed devenue Notes Payable Interest poyable $10.000 Common Stock Retained Eadnings GLAS Total liabilities and RE $141150