Question

2. At the end of the fiscal year, a manual inventory count showed that $650 of supplies remain actual amount .. Show the balancing effects on the accounting equation Record the adjusting journal entry in two-line format using a debit and a credit c. Show T-Accounts with beginning balances, transactions & end balances 3. Four of the $25 gift cards sold in November were redeemed this month. Show the adjusting journal entry that the accountant needs to prepare. Show the balancing effects on the accounting equation b. Record the adjusting journal entry in two-line format using a debit and a credit c. Show T-Accounts with beginning balances, transactions & end balances. 4. Prepare an Adjusted Trial Balance for Fido's Food Mart. 5. Prepare the following financial statements from the Adjusted Trial Balance in 14. a. Single-step Income Statement b. Statement of Retained Earnings c. Classified Balance Sheet YEAR END REVIEW KUMOHD/Sho.com UUUUUUUUUUUUuuuuuu Balance Sheet Income Statement Revenue Expenses Insurance Expense Supplies Expense Cash Accounts Receivable Inventory Suppllies Prepaid Expenses Liabilities Accounts Payable Wages Payable Unearned Revenue (Gift Cards) Equity Common Stck Retained Earnings The objective for period-end adjustments is to accurately report the economic impact of the account- ing period. An analysis will be necessary to determine what expenses have been used during the period. Expenses that haven't been used, are assets (prepayments) for future use. Revenue is earned when the goods are delivered or the service is performed. Revenue received before the delivery of goods or services are a Liability to the company. The company must complete its promise to deliver goods or services, or refund the money received in advance.

Answer 1

1. a Accounting Equation -

Assets Accounting Equation Retained Liabilities Equity Explanation Earnings $ (160) Insurance Expense + $ (160) +

1. b Journal Entry -

Fido's Food Mart Journal Entries Date Accounts Title Debit Credit Dec 31 Insurance Expense $ 160 Prepaid Insurance $ 160 (Being one month Insurance policy Expired)

1. c Ledger -

Prepaid Insurance Beg. Bal. $ 480 Dec 31 Insurance Expense $ 160 $ 160 Dec 31 Cl Bal. $ 320 cl Bal. $ 160

2. a Accounting Equation -

Assets Accounting Equation Retained Liabilities Equity Explanation Earnings $ (1,200) Supplies Expense + $ (1,200) +

2. b Journal Entry -

Credit Fido's Food Mart Journal Entries Date Accounts Title Debit Dec 31 Supplies Expense $ 1,200 Supplies (Being Supplies utilised) $ 1,200

2. c Ledger -

Supplies Beg. Bal. $ 1,850 Dec 31 Supplies Expense $ 1,200 $ 1,200 Dec 31 Cl Bal. $ 650 cl Bal. $ 1,200

3. a Accounting Equation -

Assets Accounting Equation Retained Liabilities + Equity Explanation Earnings $ (60) + $ 60 Sales Revenue

3. b Journal Entry -

Credit Fido's Food Mart Journal Entries Date Accounts Title Debit Dec 31 Unearned Revenue (Gift Cards) $ 60 Sales Revenue (Being Revenue Earned) $ 60

3. c Ledger -

Unearned Revenue (Gift Cards) Dec 31 $ 60 Beg. Bal. $ 375 Sales Revenue Dec 31 $ $ 60 cl Bal. $ 315 cl Bal. $ 60

4. Trial Balance -

Credit Debit $ 50,938 $ 12,250 $ 84,720 $ 650 $ 320 $ 30,550 $ 12,250 Fido's Food Mart Trial Balance December 31, 20xx Accounts Title Cash Accounts Receivable Inventory Supplies Prepaid Insurance Equipment Vehicle Accumulated Depreciation - Equipment & Vehicle Accounts Payable Unearned Revenue (Gift Card) Bonds Payable Common Stock (200 Shares @$210/ Share, Par $210) Retained Earnings Sales Revenue Operating Expense Depreciation Expense Insurance Expenses Rent Expense Supplies Expense Wages Expense $ $ 62,128 $ 315 $ 12,000 $ 42,000 $ $ 132,685 $ 34,840 $ $ 160 $ 5,750 $ 1,200 $ 15,500 Toal $249,128 $249,128