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Below is the trial balance of Summit Ltd. at December 31, 2021 Summit Ltd. Trial Balance December 31, 2021 Debit $ 100,000 40,000 4,800 8,000 96,000 Account Credit Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation- Equipment Notes Payable Unearned revenue Share Capital- Ordinary $ 8,000 8,800 6,000 140,000 Dividends Retained Earnings Service Revenue 4,000 50,000 80,000 Salaries expense Rent expense Advertising expense Total 20,000 12,000 8,000 $ 292.800 $ 292.800 Other data: 1. Supplies on hand at December 31 are $1,500. 2. A utility bill for $500 has not been recorded and will not be paid until next month. (The appropriate liability account here is accounts payable) 3. The insurance policy was purchased on November 1, 2021 and is for a year. 4. $2,500 of unearned service revenue is recognized for services performed at the end of December. 5. The interest accrued but not yet recorded or paid on the note payable is $200 for 2021. 6. The equipment was purchased before 2021. It has a 4-year period with no residual value. It is being depreciated at $24,000 per year. 7. Invoices representing $3,000 of services performed have not been recorded as of December 31.

Below is the trial balance of Summit Ltd. at December 31, 2021 Summit Ltd. Trial Balance December 31, 2021 Debit $ 100,000 40,000 4,800 8,000 96,000 Account Credit Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation- Equipment Notes Payable Unearned revenue Share Capital- Ordinary $ 8,000 8,800 6,000 140,000 Dividends Retained Earnings Service Revenue 4,000 50,000 80,000 Salaries expense Rent expense Advertising expense Total 20,000 12,000 8,000 $ 292.800 $ 292.800 Other data: 1. Supplies on hand at December 31 are $1,500. 2. A utility bill for $500 has not been recorded and will not be paid until next month. (The appropriate liability account here is accounts payable) 3. The insurance policy was purchased on November 1, 2021 and is for a year. 4. $2,500 of unearned service revenue is recognized for services performed at the end of December. 5. The interest accrued but not yet recorded or paid on the note payable is $200 for 2021. 6. The equipment was purchased before 2021. It has a 4-year period with no residual value. It is being depreciated at $24,000 per year. 7. Invoices representing $3,000 of services performed have not been recorded as of December 31.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 24CE
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Below is the trial balance of Summit Ltd. at December 31, 2021 Summit Ltd. Trial Balance December 31, 2021 Account Debit Credit Cash $ 100,000 Accounts Receivable 40,000 4,800 8,000 Prepaid Insurance Supplies Equipment Accumulated Depreciation- Equipment Notes Payable Unearned revenue Share Capital- Ordinary Dividends 96,000 2$ 8,000 8,800 6,000 140,000 4,000 Retained Earnings Service Revenue Salaries expense Rent expense Advertising expense Total 50,000 80,000 20,000 12,000 8,000 $ 292.800 292,800 Other data: 1. Supplies on hand at December 31 are $1,500. 2. A utility bill for $500 has not been recorded and will not be paid until next month. (The appropriate liability account here is accounts payable) 3. The insurance policy was purchased on November 1, 2021 and is for a year. 4. $2,500 of unearned service revenue is recognized for services performed at the end of December. 5. The interest accrued but not yet recorded or paid on the note payable is $200 for 2021. 6. The equipment was purchased before 2021. It has a 4-year period with no residual value. It is being depreciated at $24,000 per year. 7. Invoices representing $3,000 of services performed have not been recorded as of December 31. 1 Instructions: 1) Prepare the adjusting entries for the year ended December 31, 2021. 2) Post the adjusting entries 3) Prepare an adjusted trial balance 4) After preparing the adjusted trial balance, prepare the necessary closing entries on December 31, 2021. 5) Post the closing entries 6) Prepare the Post-Closing Trial Balance
Transcribed Image Text:Below is the trial balance of Summit Ltd. at December 31, 2021 Summit Ltd. Trial Balance December 31, 2021 Account Debit Credit Cash $ 100,000 Accounts Receivable 40,000 4,800 8,000 Prepaid Insurance Supplies Equipment Accumulated Depreciation- Equipment Notes Payable Unearned revenue Share Capital- Ordinary Dividends 96,000 2$ 8,000 8,800 6,000 140,000 4,000 Retained Earnings Service Revenue Salaries expense Rent expense Advertising expense Total 50,000 80,000 20,000 12,000 8,000 $ 292.800 292,800 Other data: 1. Supplies on hand at December 31 are $1,500. 2. A utility bill for $500 has not been recorded and will not be paid until next month. (The appropriate liability account here is accounts payable) 3. The insurance policy was purchased on November 1, 2021 and is for a year. 4. $2,500 of unearned service revenue is recognized for services performed at the end of December. 5. The interest accrued but not yet recorded or paid on the note payable is $200 for 2021. 6. The equipment was purchased before 2021. It has a 4-year period with no residual value. It is being depreciated at $24,000 per year. 7. Invoices representing $3,000 of services performed have not been recorded as of December 31. 1 Instructions: 1) Prepare the adjusting entries for the year ended December 31, 2021. 2) Post the adjusting entries 3) Prepare an adjusted trial balance 4) After preparing the adjusted trial balance, prepare the necessary closing entries on December 31, 2021. 5) Post the closing entries 6) Prepare the Post-Closing Trial Balance
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