Question

Question 6 The following is Ivanhoe Cycle Repair Shop's trial balance at January 31, 2017, the company's fiscal year end: Credit $11,000 IVANHOE CYCLE REPAIR SHOP Trial Balance January 31, 2017 Debit Cash $3,400 Accounts receivable 6,650 Prepaid insurance 6,420 Supplies 5,240 Land 53,000 Building 190,000 Accumulated depreciation-building Equipment 27,000 Accumulated depreciation-equipment Accounts payable Unearned revenue Mortgage payable H. Dude, capital H. Dude, drawings 98,100 Service revenue Salaries expense 125,200 Utilities expense 12,000 Interest expense 6,510 $533,520 4,500 7,300 21,970 182,200 61,000 245,550 $533,520

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you Closing Entries: Adjusting Entries: Event Credit Event Credit Account Debit Account Debit $ 4,280 Insurance Expense 246,850 1 c1 Service Revenue Prepaid Insurance $6,420/12 8 Income Summary $246,850 4,280 $ 159,479 Income Summary c2 $ 125,200 Salaries Expense 2 Supplies Expense 3,930 $ Utilities Expense 12,000 Supplies $5,240-$1,310 3,930 Interest Expense 7,269 Insurance Expense 4,280 Depreciation Expense Accumulated Depreciation-Building Accumulated Depreciation-Equipment ($190,000/50 Years), ($27,000/9 Years) 6,800 Supplies Expense Depreciation Expense 3,930 3,800 6,800 3,000 $ 87,371 Income Summary c3 H Dube, Capital 87,371 Interest Expense 4 759 $ H Dube Capital $98,100 Interest Payable 759 c4 $182,200*5% *1/12 98,100 H Dube withdrawals 5 Unearned Revenue 1,300 Service Revenue 1,300 Adjusted Trial Balance: Unadjusted Adjustments Adjusted Debit Credit Debit Credit Debit Credit Cash S 3,400 3,400 Accounts Receivable 6,650 6,650 $ 4,280 $ Prepaid Insurance 6,420 2,140 3,930 $ Supplies 5,240 1,310 $ 53,000 S 53,000 $190,000 Land $190,000 Building Accumulated Depreciation-Build ing $ 3.800 $ 11,000 14,800 $ 27,000 Equipment 27,000 Accumulated Depreciation-Equipment $ 7,500 4,500 3,000 7,300 21,970 $ Accounts Payable 7,300 Unearned Revenue 1,300 20,670 $ Interest Payable 759 759 $ 182,200 Mortgage Payable H. Dude Capital $ 182,200 $ 61,000 61,000 H. Dude Drawing $98,100 $ 98,100 $ 1,300 $245,550 246,850 Service Revenue $ 125,200 $ 125.200 Salaries Expense $ 12,000 6,510 $12,000 Utilities Expense $ $ Interest Expense 7,269 759 $ 4,280 Insurance Expense 4,280 Supplies Expense 3,930 3,930 Depreciation Expense 6,800 6,800 Total 533,520 533,520 $ 17,069 17,069 $541,079 $ 541,079

Income Statement: $ 246,850 Service Revenue Less: Expense $125,200 $ 12,000 Salaries Expense Utilities Expense Interest Expense 7,269 Insurance Expense 4,280 $3,930 Supplies Expense Depreciation Expense 6,800 $ (159,479) $ 87,371 Total Operating Expense Net Income Statement of owner's capital: $ 56,000 Beginning Balance $ Add: New Investment 5,000 $ 87,371 $ (98,100) $50,271 Add: Net Income Less: Drawing Ending Balance Balance Sheet: Assets: Current Assets $ Cash 3,400 Accounts Receivable 6,650 $ Prepaid Insurance 2,140 Supplies 1,310 $ 13,500 $53,000 Total current Assets Land $ 190,000 (14,800) 175,200 $ 27,000 $ (7,500) 19,500 $ 261,200 Building Accumulated Depreciation-Building Equipment Accumulated Depreciation- Equipment Total Assets Liabilities and Stockholder's Equity: Current liabilities: Accounts Payable 7,300 $ 20,670 Unearned Revenue Interest Payable 759 Current portion of mortgage payable 4,500 Total Current liabilities 33,229 Mortgage Payable $177,700 $ 210,929 Total Liabilities Owner's Capital: H. Dude Capital 50,271 $ 261,200 Total Liabilities and Stockholder's Equity