Question

+ E A Read aloud | V Draw V Highlight PALM TRAVEL AGENCY TRIAL BALANCE DECEMBER 31, 2017 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Notes Payable Accounts Payable Interest Payable Salaries and Wages Payable Unearned Service Revenue Common Stock Retained Earings Service Revenue Salaries and Wages Expense Insurance Expense Interest Expenses Depreciation Expense Supplies Expense Rent Expense Unadjusted Debit Credit $16,500 6,500 3.600 2,000 30,000 $12,000 10,000 2,600 0 0 1,100 1,000 13,800 46,100 26.000 0 0 0 0 2,000 586,600 586,000 Adjusted Debit Credit $16,500 7,250 800 800 30,000 $15,000 10,000 2,600 600 1,850 250 1,000 13.800 47,700 27,850 1,200 600 3,000 2,800 2,000 $92,800 $92.800

Answer 1

(a)

Account Titles	Debit	Credit
Accounts Receivable	$                750
Service Revenue		$             750
Supplies Expense	$            2,800
Supplies		$         2,800
Insurance Expense	$            1,200
Prepaid Insurance		$         1,200
Depreciation Expense	$            3,000
Accumulated Depreciation		$         3,000
Interest Expense	$                600
Interest Payable		$             600
Salaries and Wages Expense	$            1,850
Salaries and Wages Payable		$         1,850
Unearned Service Revenue	$                850
Service Revenue		$             850

(b)

Income Statement
Revenue
Service Revenue	$          47,700
Expenses
Salaries and Wages Expense	$          27,850
Insurance Expense	$            1,200
Interest Expense	$                600
Depreciation Expense	$            3,000
Supplies Expense	$            2,800
Rent Expense	$            2,000
Total Expenses	$          37,450
Net Income	$          10,250

Statement of Retained Earnings
Beginning Balance	$          13,800
Add Net Income	$          10,250
	$          24,050
Less Dividends	$                   -
Ending Balance	$          24,050

Balance Sheet
Assets
Current Assets
Cash	$          16,500
Accounts Receivable	$            7,250
Supplies	$                800
Prepaid Insurance	$                800
Total Current Assets		$       25,350
Property, Plant and Equipment
Equipment	$          30,000
Less :Accumulated Depreciation-Equipment	$         (15,000)
Total Property, Plant and Equipment		$       15,000
Total Assets		$       40,350
Liabilities & Stockholder's Equity
Current Liabilities
Accounts Payable	$            2,600
Salaries and Wages Payable	$            1,850
Interest Payable	$                600
Unearned Service Revenue	$                250
Total Current Liabilities		$         5,300
Long term Liabilities
Notes Payable		$       10,000
Total Liabilities		$       15,300
Stockholder's Equity
Common Stock	$            1,000
Retained Earnings	$          24,050
Total Stockholder's Equity		$       25,050
Total Liabilities & Stockholder's Equity		$       40,350

c)
(1) Interest Rate = $600 / 10000 x 12 / 6 = 12%

(2) Salaries and Wages payable 2016 = $27200 - 27850 + 1850 = $1200

If you have any query, kindly comment with your query and please mark thumbs up.