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 i dollars. An

Answer 1

NOTE:

The Trial Balance is not available , hence the Adjustement Journal Entries have been tabulated hereunder.This is the best that can be provided with no Trial Balance information in the question.

T accounts have not been provided as opening balances are not available

Also assumed the year ends at 31 December 2021 for which this Trial is been prepared.

Adj Ref DEBIT CREDIT a X DETAILS Supplies Expense Supplies (x= Supplies Amount in TB - 200) X b 3000 Rent Expense Prepaid Rent (Accrued rent for Nov-Dec accounted i.e 4000*3/4) 3000 C 900 Insurance Expense Prepaid Insurance (Accrued Insurance cost for Mar - Dec accounted i.e 1200*9/12) 900 d 1000 Depreciation Exp-Equipment Acc Depreciation-Equipment (Current years Dep exp accounted i.e. (10000-1000)/9) 1000 e 160 Unearned Revenue Revenue (Accrued revenue for Nov-Dec accounted i.e. (400*2)/5) 160 f 375 Interest Expense Interest Payable (5 months of accrued intereset accounted i.e. (10000*9%)*5/12 375