Question

3.3 question

b. Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post b. Prepare an income statement and an owner's equity statement for the 3 months ending September 30 ing the Accounts Instructions a. Journalize the adjusting entries on May 31. 55 the adjusting entries. (Use Jl as the posting reference.) c. Prepare an adjusted trial balance on May 31. d. Prepare an income statement and an owner's equity statement for the month of May and a balance sheet at May 31. P3.3A (LO 2, 3, 4) Financial Statement Alena Co. was organized on July 1, 2020. Quarterly finan cial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown below. incial Alena Co. Trial Balance September 30, 2020 Unadjusted Dr. Cr. Cash $ 8,700 Accounts Receivable 10,400 Supplies 1.500 Prepaid Rent 2.200 Equipment 18.000 Accumulated Depreciation--Equipment $-0- Notes Payable 10.000 Accounts Payable 2.500 Salaries and Wages Payable Interest Payable Unearned fet Revenue 1.900 Owner's Cari 22,000 Owner's Drawings 1,600 16,000 Service Revenue 1,410 Rent Revenue 8,000 Salaries and Wages Expense 1,900 Rent Expense Depreciation Expense Supplies Expense 1,510 Utilities Expense Interest Expense $53,810 $53,810 Adjusted Dr. Cr. $ 8,700 11,500 650 500 18.000 $ 700 10.000 2,500 725 100 450 22,000 1,600 17,100 2.860 8,725 3,600 700 850 1,510 100 $56,435 $56,435 Instructions a. Journalize the adjusting entries that were made. and a balance sheet at September 30. c. If the note bears interest at 12%, how many months has it been outstanding? view of the ledger of Gina Company at December 31, 2020, produces the fol

Answer 1

Journal Entries in the books of Alena Co.

Debit Credit

1. Accounts Receivable (11500-10400)	1100
Service Revenue (17100-16000)		1100
2. Salaries & Wages (8725-8000)	725
Salaries & Wages Payable (given)		725
3 Rent Expenses (3600 -1900)	1700
Prepaid Rent (2200-500)		1700
4. Interest Expense (given )	100
Interest Payable		100
5. Supplies Expense (given)	850
Supplies Account (1500-650)		850
6. Depreciation Expenses (given)	700
Accumulated Depreciation (700-0)		700
7. Unearned Revenue account (1900-450)	1450
Rent Revenue (2860-1410)		1450

Income Statement for the 3 months ending on September
INCOME:-
Service Revenue	17100
Rent Revenue	2860
TOTAL (A)		19960
EXPENSES:-
Salaries & Wages	8725
Rent Expenses	3600
Depreciation Expenses	700
Supplies Expenses	850
Utilities Expenses	1510
Interest Expenses	100
TOTAL (B)		15485
INCOME FOR THE PEROID (A-B)		4475

OWNERS EQUITY AS ON 30TH SEPTEMBER
Owners Capital	22000
Add:- Income for the Peroid	4475	26475
Less:- Owners Drawings		1600
OWNERS EQUITY		24875

BALANCE SHEET AS ON 30TH SEPTEMBER:-

ASSETS
Cash	8700
Accounts Receivable	11500
Supplies	650
Prepaid Rent	500
Equipment	18000
TOTAL ASSETS	39350
LIABILITIES
Accumulated Depreciation	700
Notes Payable	10000
Accounts Payable	2500
Interest Payable	100
Unearne4d Rent Revenue	450
Salaries & Wages Payable	725
Owners Equity	24875
TOTAL LIABILITIES	39350

Interest is @12% per year hence interest on 10000 for full year is 10000*12% = 120

However since interst amount outstanding ia 100 hence it is outstanding for (120 /12) 10 months