Question

The Concord Corporation opened for business on May 1, 2022. Its trial balance before adjustment on May 31 is as follows

The Concord Corporation opened for business on May 1, 2022. Its trial balance before adjustment on May 31 is as follows. Concord Corporation Trial Balance May 31, 2022 Account Number Debit Credit 101 Cash 126 130 Supplies Prepaid Insurance Land $ 3,010 1,790 2,064 10,320 51,600 12,720 140 141 149 200 201 208 Buildings Equipment Notes Payable Accounts Payable Unearned Rent Revenue Common Stock $ 34,400 9,616 311 2,838 30,100 8,678 429 610 726 Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 732 516 2,838 774 $85,632 $85,632

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Answer 1

Solution:

Debit Adjusting Entries Date General Journal May-31 Insurance Expense Prepaid Insurance (To record expired insurance expense) Credit $172 $172 $1,145 May-31 Supplies Expense Supplies (To record supplies used for the month) $1,145 $3,852 May-31 Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment (To record depreciation expense on assets) $2,580 $1,272 $344 May-31 Interest Expense ($34,400 * 12% * 1/12) Interest Payable (To record interest due on notes payable) $344 $1,892 May-31 Unearned Rent Revenue Rent Revenue (To record 2/3rd of rent revenue earned) $1,892 $885 May-31 Salaries and Wages Expenses Salaries and Wages Payable (To record Salaries and Wages due) $885

General Ledger Cash Ref Debit $3,010 Credit Balance Date Explanation May-31 Balance $3,010 Supplies Ref Credit Date Explanation May-31 Balance May-31 Adjusting Debit $1,790 Balance $1,790 $645 $1,145 Prepaid Insurance Debit $2,064 Ref Date Explanation May-31 Balance May-31 Adjusting Credit Balance $2,064 $1,892 $172 Land Ref Credit Date Explanation May-31 Balance Debit $10,320 Balance $10,320 Buildings Ref Credit Date Explanation May-31 Balance Debit $51,600 Balance $51,600 Accumulated Depreciation - Buildings Date Explanation Ref Debit Credit May-31 Adjusting $2,580 Balance $2,580

Equipments Ref Debit $12,720 Date Explanation May-31 Balance Credit Balance $12,720 Accumulated Depreciation - Equipments Date Explanation Ref Debit Credit May-31 Adjusting $1,272 Balance $1,272 Notes Payable Ref Debit Date Explanation May-31 Balance Credit $34,400 Balance $34,400 Accounts Payable Ref Debit Balance Date Explanation May-31 Balance Credit $9,616 $9,616 Unearned Rent Revenue Ref Debit Date Explanation May-31 Balance May-31 Adjusting Credit $2,838 Balance $2,838 $946 $1,892 Salaries and Wages Payable Date Explanation Ref Debit May-31 Adjusting Credit $885 Balance $885 Interest Payable Ref Debit Date Explanation May-31 Adjusting Credit $344 Balance $344

Common Stock Ref Debit Date Explanation May-31 Balance Credit $30,100 Balance $30,100 Rent Revenue Ref Debit Credit Date Explanation May-31 Balance May-31 Adjusting $8,678 $1,892 Balance $8,678 $10,570 Advertising Expense Ref Debit $516 Date Explanation May-31 Balance Credit Balance $516 Depreciation Expense Ref Debit $3,852 Date Explanation May-31 Adjusting Credit Balance $3,852 Supplies Expense Ref Debit $1,145 Credit Date Explanation May-31 Adjusting Balance $1,145 Interest Expense Ref Debit $344 Date Explanation May-31 Adjusting Credit Balance $344

Insurance Expense Ref Debit $172 Date Explanation May-31 Adjusting Credit Balance $172 Credit Salaries and Wages Expense Date Explanation Ref Debit May-31 Balance $2,838 May-31 Adjusting $885 Balance $2,838 $3,723 Utilities Expense Ref Debit $774 Date Explanation May-31 Balance Credit Balance $774

Credit Debit $3,010 $645 $1,892 $10,320 $51,600 $2,580 $12,720 Concord Corporation Adjusted Trial Balance May 31, 2022 Acc. No. Accounts Title 101 Cash 126 Supplies 130 Prepaid Insurance 140 Land 141 Buildings 142 Accumulated Depreciation - Buildings 149 Equipment 150 Accumulated Depreciation - Equipment 200 Notes Payable 201 Accounts Payable 208 Unearned Rent Revenue 212 Salaries and Wages Payable 230 Interest Payable 311 Common Stock 429 Rent Revenue 610 Advertising Expense 619 Depreciation Expense 631 Supplies Expense 718 Interest Expense 722 Insurance Expense 726 Salaries and Wages Expense 732 Utilities Expense Totals $1,272 $34,400 $9,616 $946 $885 $344 $30,100 $10,570 $516 $3,852 $1,145 $344 $172 $3,723 $774 $90,713 $90,713

Concord Corporation Income Statement May 31, 2022 Revenues: $10,570 Rent Revenue Expenses: Advertising Expense Depreciation Expense Supplies Expense Interest Expense Insurance Expense Salaries and Wages Expense Utilities Expense Total Expenses Net Income $516 $3,852 $1,145 $344 $172 $3,723 $774 $10,526 $44 Concord Corporation Retained Earnings Statement May 31, 2022 Beginning Retained Earnings Add: Net Income Ending Retained Earnings $0 $44 $44

Concord Corporation Balance Sheet May 31, 2022 Assets Cash Supplies Prepaid Insurance Land Buildings Less: Accumulated Depreciation - Buildings Equipment Less: Accumulated Depreciation - Equipment Total Assets $3,010 $645 $1,892 $10,320 $49,020 $51,600 $2,580 $12,720 $1,272 $11,448 $76,335 Liabilities and Stockholders' Equity Liabilities: Notes Payable Accounts Payable Unearned Rent Revenue Salaries and Wages Payable Interest Payable Total Liabilities Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $34,400 $9,616 $946 $885 $344 $46,191 $30,100 $44 $30,144 $76,335