Question

Rich Consulting Corporation Unadjusted Trial Balance December 31, 2017 Credit S Debit 23,000 40.000 $ 1.800 3,000 34.000 4.800 100,000 Account Cash Accounts Receivable Allowance for Doubtful Accounts Office Supplies Inventory Prepaid Insurance Equipment Accumulated Depreciation--Equip. Accounts Payable Common Stock Retained Earnings Sales Revenue General and Administrative Expense Salaries and Wages Expense Rent Expense 15,000 10.800 41,000 55,000 240,000 96,000 50,000 12.800 S 363,600 S 363,600

At year end, the following events have not been accounted for.

1. Insurance expired during the year, and only $2,800 remained.
2. Depreciation on equipment of $10,000.
3. After a physical count, office supplies costing $2,000 were on hand.
4. December consulting work of $40,000 was performed, but has not yet been recorded.
5. Accrued salaries and wages at December 31^st were $5,800.

Instructions

(1.1)     Prepare the necessary adjusting entries (please use related account names shown on the

Trial Balance). New accounts may be created if needed.

17.1 Adjusting Entries

Event	Account Name	Debit	Credit
a
Event
b
Event
c
Event
d
Event
e

Closing Entries

Account Name	Debit	Credit

Answer 1

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Rich
Work sheet	Unadjusted	Adjustments	Adjusted
Account Titles	Debit	Credit	Debit	Credit	Debit	Credit
Cash	23,000.00				23,000.00
Accounts Receivable	40,000.00		40,000.00		80,000.00
Allowance for doubtful accounts		1,800.00				1,800.00
Office Supplies	3,000.00			1,000.00	2,000.00
Inventory	34,000.00				34,000.00
Prepaid Insurance	4,800.00			2,000.00	2,800.00
Equipment	100,000.00				100,000.00
Accumulated Depreciation- Equip		15,000.00		10,000.00		25,000.00
Accounts Payable		10,800.00				10,800.00
Common Stock		41,000.00				41,000.00
Retained Earnings		55,000.00				55,000.00
Sales Revenue		240,000.00		40,000.00		280,000.00
General and Admin Expense	96,000.00				96,000.00
Salaries & Wages Expense	50,000.00		5,800.00		55,800.00
Rent Expense	12,800.00				12,800.00
Insurance Expense			2,000.00		2,000.00
Depreciation Expense- Equip			10,000.00		10,000.00
Supplies Expense			1,000.00		1,000.00
Salaries & Wages Payable				5,800.00		5,800.00
Total	363,600.00	363,600.00	58,800.00	58,800.00	419,400.00	419,400.00

Adjusting Entries
Event	Account	Debit	Credit
a.	Insurance Expense	2,000.00
	Prepaid Insurance		2,000.00
b.	Depreciation Expense- Equip	10,000.00
	Accumulated Depreciation- Equip		10,000.00
c.	Supplies Expense	1,000.00
	Office Supplies		1,000.00
d.	Accounts Receivable	40,000.00
	Sales Revenue		40,000.00
e.	Salaries & Wages Expense	5,800.00
	Salaries & Wages Payable		5,800.00
Closing Entries
Date	Account	Debit	Credit
Dec 31 2017	Sales Revenue	280,000.00
	Income Summary		280,000.00
Dec 31 2017	Income Summary	177,600.00
	General and Admin Expense		96,000.00
	Salaries & Wages Expense		55,800.00
	Rent Expense		12,800.00
	Insurance Expense		2,000.00
	Depreciation Expense- Equip		10,000.00
	Supplies Expense		1,000.00
Dec 31 2017	Income Summary	102,400.00
	Retained Earnings		102,400.00