Question

Fix the boxes in Red.

The Oriole Company opened for business on May 1, 2022. Its trial balance before adjustment on May 31 is as follows. Oriole Company Trial Balance May 31, 2022 Account Number Debit Credit 101 Cash 126 $ 4,060 2,420 2,784 13,920 130 140 141 69,600 16,320 149 200 $ 46,400 201 Supplies Prepaid Insurance Land Buildings Equipment Notes Payable Accounts Payable Unearned Rent Revenue Common Stock Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 12,976 208 3,828 40,600 311 429 10,868 610 696 726 732 3,828 1,044 $114,672 $114,672

Answer 1

1)Ledger accounts

Supplies

Balance b/d DR 2420

Adjusting - supplies expense CR 1550

Balance C/d DR 870

2) Net income = 4295 after adjusting all receivables,prepaid, and accrued .

3) Retained earnings opening = 0

Add: Net income =4295

Closing retained earnings = 4295

4)Balance sheet

Cash 4060   Prepaid insurance 2552   

Supplies 870

Land 13920

Equipment less depreciation 16184

Building less depreciation 69310   

   TOTAL ASSETS. 106896

Accounts Payable 12976

Notes payable 46400

Salary and wages payable 885

Unearned rent revenue 1276

Interest payable 464

Common stock 40600

Retained earnings. 4295

TOTAL LIABILITIES. 106896