Account | Debit | Credit | |
a | Depreciation | $ 3,600 | |
Accumulated Depreciation - Building | $ 3,600 | ||
b | Depreciation | $ 2,400 | |
Accumulated Depreciation - Computer | $ 2,400 | ||
c | Salaries and Wages Expense | $ 2,170 | |
Accrued Salaries and Wages | $ 2,170 | ||
d | Insurance Expense | $ 2,500 | |
Prepaid Expense | $ 2,500 | ||
e | Accounts Receivable | $ 4,350 | |
Fees Earned | $ 4,350 | ||
f | Supplies Expense | $ 1,075 | |
Supplies | $ 1,075 | ||
g | Rent Unearned | $ 4,400 | |
Rent Income | $ 4,400 | ||
NOTE- Please see the following explanations
a. It will increase the accumulated depreciation - Building by
$3,600 and create a new line of Depreciation Expense
b. It will increase the accumulated depreciation - Equipment by
$2,400 and also increase the new line of Depreciation Expense
created in a. above
c. It will increase the Salaries and Wages expense by $2,170 and
create a new account of Accrues Salaries and Wages
d. Prepaid Insurance as at Dec 31 is $3,500 which means the balance
(opening was $6,000) is to be expensed off
e. Fees has been earned but not yet been billed. The entry would
increase Accounts Receivable and Fees earned acounts
f. Supplies were $1,450 in the beginning and are $350 now. The
difference is the consumption
g. Unearned rent was $7,200 which is $2,800 now. This means the
difference has been earned.
The adjusted Trial is as follows
Account | Debit | Credit |
Cash | $ 4,200 | |
Accounts Receivable | $ 24,950 | |
Prepaid Insurance | $ 3,500 | |
Supplies | $ 375 | |
Land | $ 1,00,000 | |
Building | $ 1,61,500 | |
Accumulated Depreciation Building | $ 79,300 | |
Equipment | $ 80,100 | |
Accumulated Depreciation Equipment | $ 37,700 | |
Accounts Payable | $ 7,500 | |
Unearned Rent | $ 2,800 | |
Curtis Loomis, Capital | $ 1,57,100 | |
Curtis Loomis, Drawing | $ 5,000 | |
Fees Earned | $ 2,61,550 | |
Salaries and Wages Expense | $ 1,03,970 | |
Utilities Expense | $ 29,275 | |
Advertising Expense | $ 15,000 | |
Repairs Expense | $ 12,100 | |
Miscellaneous Expense | $ 4,050 | |
Rent Income | $ 4,400 | |
Depreciation Expense | $ 6,000 | |
Insurance Expense | $ 2,500 | |
Accrued Salaries and Wages | $ 2,170 | |
$ 5,52,520 | $ 5,52,520 | |
PROBLEM 3-5A Greco Service Co., which specializes in appliance repair services, is owned and op- erated by Curtis Loomis. Greco Service Co.'s accounting clerk prepared the follow- ing trial balan...
ed Trial Balances Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services accounting der prepared the following unadjusted trial balance at July 31, 2019: Reece Financial Services Co. Unadjusted Trial Balance July 31, 2049 Debit Credit Balances Balances 10,200 34,750 6,000 Cash Accounts Receivable Prepaid Insurance Supplies Land Building Accumulated Depreciation Building Equipment Accumulated Depreciation Equipment Accounts Payable Unearned Rent 1,725 50,000 155,750 62,850 45,000 17,650 3,750 3,600 Common...
Adjusting Entries and Adjusted Trial Balances Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services’ accounting clerk prepared the following unadjusted trial balance at July 31, 20Y6: Reece Financial Services Co. Unadjusted Trial Balance July 31, 20Y6 Debit Balances Credit Balances Cash 10,200 Accounts Receivable 34,750 Prepaid Insurance 6,000 Supplies 1,725 Land 50,000 Building 155,750 Accumulated Depreciation—Building 62,850 Equipment 45,000 Accumulated Depreciation—Equipment 17,650 Accounts Payable 3,750 Unearned Rent 3,600...
Q1 DDC Co, specialized in computer repairs, is owned by John Greenwich. prepared the following trial balance at December 31, 2016 (in S): Unadjusted Trial Balance, DDC Co. December 31, 2016 Account Name Debit Credit Cash 5,200 Accounts Receivable 16,200 Prepaid Insurance 4,000 Supplies 2,450 Land 134,750 Equipment 135,900 Accumulated Depreciation, Equipment 65,300 Accounts Payable 7,500 Unearned Fee Revenue 6,000 Capital 127,100 Withdrawals 5,000 Revenues 188,400 Salaries Expense 90,800 Total 394,300 394,300 The data needed to determine year-end adjustments are...
can you please mark the explanations while answering this
practice problem?
1.
2.
3.
etc
Magness Delivery Service has completed closing entries and the accounting cycle for 2016. The business is now ready to record January 2017 transactions. Collected $1,000 cash from customer on account. 5 Purchased office supplies on account, $600. 12 Performed delivery services for a customer and received $2,000 cash. 15 Paid employee salary including the amount owed on December 31, $2,500. 18 Performed delivery services on...