Question

2. Shown below are selected data taken from the unadjusted and adjusted trial balances for the Simonson Company for the current year ended December 31. Determine the items A through 1 below. Simonson Company Trial Balances December Unadjusted Trial Adjusted Trial Balance 10.000 88,270 700 A) 49,600 10,260 Accounts receivable O ve supplies Prepaid insurance Onice equipment Accumulated depreciation « | | Accounts payable Salarios payable Common stock Retained earnings Revenue earned Advertising expense Depreciation expense-Office equipment Insurance expense Ollie supplies expense Rent expense Salaries expense S. 36,400 2.700 40.000 36,370 @ $42.500 15.000 2.160 462.000 Answers: A....

Answer 1

		Unadjusted			Adjusted
		Debit	Credit		Debit	Credit
Cash		$   10,000.00			$   10,000.00
A/R		$   88,270.00			$    90,770.00
Office Supplies		$         700.00			$         220.00
Prepaid Insurance		$     6,800.00			$      2,500.00
Office Equipment		$   49,600.00			$   49,600.00
Accumulated Dep.			$      8,100.00			$   10,260.00
Accounts Payable			$    36,400.00			$   36,400.00
Salaries Payable			$                  -			$     2,700.00
Common Stock			$ 101,860.00			$   40,000.00
Retained Earnings						$   36,370.00
Revenue Earned			$ 514,510.00			$ 542,500.00
Advertising Expense		$   15,000.00			$    15,000.00
Depreciation Expense		$                  -			$      2,160.00
Insurance Expense		$                  -			$      4,300.00
Office Supplies Expense		$                  -			$         480.00
Rent Expense		$   28,500.00			$    28,500.00
Salaries Expense		$ 462,000.00			$ 464,700.00

Workings:

C
Unadjusted Prepaid Insurance =			Adjusted Prepaid Insurance + Insurance Expense
		=	$ 2500 + $ 4300
		=	$       6,800.00
B
Adjusted Office Supplies =			Unadjusted Office Supplies - Office Supplies Expense
		=	$ 700 - $ 480
		=	$          220.00
D
Unadjusted Office Equipment = Adjusted Office Equipment = $ 49600
E
Unadjsued Accu. Dep		=	Adjusted Accu. Dep - Depreciation Expense
		=	$ 10260 - $ 2160
		=	$       8,100.00
H
Adjusted Salaries Expense =			Unadjusted Salaries Expense + Adjusted Salaries Payable
		=	$ 462000 + $ 2700
		=	$   464,700.00
G
Unadjusted Revenue Earned =
Adjusted Revenue Earned - Adjusted Revenue Expenses =					Adjusted Net Income
$ 542500 - $ 515140 = $ 27360
Adjusted Retained Earnings - Adjusted Net Income = Unadjusted Retained Earnings
$ 36370 - $ 27360 = $ 9010
Unadjusted Revenue Earned = Unadjusted Revenue Expenses + Unadjusted Retained Earnings
		=	$ 505500 + $ 9010
		=	$   514,510.00
A & F = Balancing Figures