Question

Help System Announcements CALCULATOR PRINTER VERSION BACK NE The unadjusted trial balance for Grouper Corp. is shown below. Assets Liabilities Stockholders' Equity Reatined Earnings Prepd. +Rec. +Supplies + Insur. +Equip. - Accts. Acc. Depr- Equip. Accts. Int. Unearned Sal. & Wages Pay. Com. Stock + Notes Pay. +Pay. +Pay. +Serv. Rev. + Cash Rey Exp. Div Bal, 15,820 C 2,860 720 4,590 4,590 2,230 1,490 11,100 13,990 8,830 -580 Assume the following adjustment data. 1. Supplies on hand at October 31 total $520. Expired insurance for the month is $120. Depreciation for the month is $135 As of October 31, services worth $950 related to the previously recorded unearned revenue had been performed. Services performed but unbilled (and no receivable has been recorded) at October 31 are $250 6. 2. 3. 4. Interest expense accrued at October 31 is $75 7 Accrued salaries at October 31 are $1,520. Prepare a tabular summary to record adjustments for the items above using the summary that follows. (If a transaction results in a decrease in Assets, Liabilities or S particular Asset, Liability or Equity item that was reduced.) Assets Liabilities Accts Rec. Prepd. Insur. Acc. Depr- Equip. Accts Pay Int. Pay Unearned Serv. Rev S Cash + Supplies Equip. 4,590 Notes Pay. + Bal. 15,820 2,860 720 4,590 2,230 1,490 1. 2.

Answer 1

1).

	Assets												Liabilities										Stockholders equity
																								Retained earning
Bal	Cash	+	Accounts receivable	+	supplies	+	prepaid insurance	+	equipment	-	Accumulated depreciation-equipment	=	Note payable	+	Accounts payable	+	Interest payable	+	Unearned service revenue	+	salaries and wage payable	+	common stock	+revenue	-	expense	-	dividend
Balance	15820				2860		720		4590				4590		2230				1490				11100	13990		8830		580
1					-2340   (2860-520)																					2340
2							-120																			120
3											135															135
4																			-950					950
5			250																					250
6																	75									75
7																					1520					1520
Total	15820	+	250	+	520	+	600	+	4590	-	135	=	4590	+	2230	+	75	+	540	+	1520	+	11100	15190	-	13020`	-	580

2)

No.	Increase /(decrease)	Account	Amount
1	Increase	Interest receivable	410
	Increase	Interest revenue	410
2	Increase	Property tax expense	800
	Decrease	Property tax payable	800
3	Decrease	Unearned service revenue (4000-700)	3300
	increase	service revenue	3300
4	Increase	Insurance expense [750(1-.60)]	300
	decrease	Prepaid insurance	300
5	Increase	Salaries and wage expense	650
	Increase	salaries and wage payable	650