JOURNAL S.no. Particulars Debit Credit 1, Salary expense Dr. 19,500 To salaries payable 19,500 (Salaries are accrued but not paid) 2. Depreciation expense Dr. 6,500 To accumulated depreciation 6,500 (Depreciation expense being recorded) 3. Insurance expense Dr. 24,000 To prepaid insurance 24,000 (Prepaid insurance being expired) 4. Supplies expense Dr. 16,500 To supplies 16,500 (Supplies expense being recorded) 5. Unearned revenue Dr. 7,000 To service revenue 7,000 (Unearned service revenue was earned) Adjusted Trial balance Debit Credit Cash 14,200 Supplies 2,500 Delivery truck 250,000 Prepaid insurance 4,000 Accounts receivable 4,500 Accumulated depreciation 6,500 Kay’s capital 430,000 Kay’s Drawings 15,300 Unearned service revenue 5,000 Salaries payable 19,500 Accounts payable 9,000 Service revenue 67,500 Salary expense 85,200 Fuel expense 29,800 Rent expense 85,000 Supplies expense 16,500 Insurance expense 24,000 Depreciation expense 6,500 Total 537,500 537,500 Income statement Service revenue 67,500 Less: expenses Salary expense 85,200 Fuel expense 29,800 Rent expense 85,000 Supplies expense 16,500 Insurance expense 24,000 Depreciation expense 6,500 Total expenses (247,000) Net loss (179,500) Balance sheet Liabilities Amt Assets Amt Kay’s capital-430,000 Cash 14,200 Less: Drawings-(15,300) Supplies 2,500 Less: loss;(179,500) 235,200 Prepaid insurance 4,000 Unearned service revenue 5,000 Accounts receivable 4,500 Salaries payable 19,500 Delivery truck-250,000 Accounts payable 9,000 Less: Accumulated depreciation-(6,500) 243,500 268,700 268,700 prepare a statement of owners equity Journalize and post the closing entries to their respective T accounts. Prepare the company’s post-closing trial balance for 2020.

JOURNAL S.no. Particulars Debit Credit 1, Salary expense Dr. 19,500 To salaries payable 19,500 (Salaries are accrued but not paid) 2. Depreciation expense Dr. 6,500 To accumulated depreciation 6,500 (Depreciation expense being recorded) 3. Insurance expense Dr. 24,000 To prepaid insurance 24,000 (Prepaid insurance being expired) 4. Supplies expense Dr. 16,500 To supplies 16,500 (Supplies expense being recorded) 5. Unearned revenue Dr. 7,000 To service revenue 7,000 (Unearned service revenue was earned) Adjusted Trial balance Debit Credit Cash 14,200 Supplies 2,500 Delivery truck 250,000 Prepaid insurance 4,000 Accounts receivable 4,500 Accumulated depreciation 6,500 Kay’s capital 430,000 Kay’s Drawings 15,300 Unearned service revenue 5,000 Salaries payable 19,500 Accounts payable 9,000 Service revenue 67,500 Salary expense 85,200 Fuel expense 29,800 Rent expense 85,000 Supplies expense 16,500 Insurance expense 24,000 Depreciation expense 6,500 Total 537,500 537,500 Income statement Service revenue 67,500 Less: expenses Salary expense 85,200 Fuel expense 29,800 Rent expense 85,000 Supplies expense 16,500 Insurance expense 24,000 Depreciation expense 6,500 Total expenses (247,000) Net loss (179,500) Balance sheet Liabilities Amt Assets Amt Kay’s capital-430,000 Cash 14,200 Less: Drawings-(15,300) Supplies 2,500 Less: loss;(179,500) 235,200 Prepaid insurance 4,000 Unearned service revenue 5,000 Accounts receivable 4,500 Salaries payable 19,500 Delivery truck-250,000 Accounts payable 9,000 Less: Accumulated depreciation-(6,500) 243,500 268,700 268,700 prepare a statement of owners equity Journalize and post the closing entries to their respective T accounts. Prepare the company’s post-closing trial balance for 2020.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.21E: Adjustments for unearned and accrued fees The balance in the unearned fees account, before...

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Question

JOURNAL

S.no.	Particulars	Debit	Credit
1,	Salary expense Dr.	19,500
	To salaries payable		19,500
	(Salaries are accrued but not paid)
2.	Depreciation expense Dr.	6,500
	To accumulated depreciation		6,500
	(Depreciation expense being recorded)
3.	Insurance expense Dr.	24,000
	To prepaid insurance		24,000
	(Prepaid insurance being expired)
4.	Supplies expense Dr.	16,500
	To supplies		16,500
	(Supplies expense being recorded)
5.	Unearned revenue Dr.	7,000
	To service revenue		7,000
	(Unearned service revenue was earned)

Adjusted Trial balance

	Debit	Credit
Cash	14,200
Supplies	2,500
Delivery truck	250,000
Prepaid insurance	4,000
Accounts receivable	4,500
Accumulated depreciation		6,500
Kay’s capital		430,000
Kay’s Drawings	15,300
Unearned service revenue		5,000
Salaries payable		19,500
Accounts payable		9,000
Service revenue		67,500
Salary expense	85,200
Fuel expense	29,800
Rent expense	85,000
Supplies expense	16,500
Insurance expense	24,000
Depreciation expense	6,500
Total	537,500	537,500

Income statement

Service revenue		67,500
Less: expenses
Salary expense	85,200
Fuel expense	29,800
Rent expense	85,000
Supplies expense	16,500
Insurance expense	24,000
Depreciation expense	6,500
Total expenses		(247,000)
Net loss		(179,500)

Balance sheet

Liabilities	Amt	Assets	Amt
Kay’s capital-430,000		Cash	14,200
Less: Drawings-(15,300)		Supplies	2,500
Less: loss;(179,500)	235,200	Prepaid insurance	4,000
Unearned service revenue	5,000	Accounts receivable	4,500
Salaries payable	19,500	Delivery truck-250,000
Accounts payable	9,000	Less: Accumulated depreciation-(6,500)	243,500
	268,700		268,700

prepare a statement of owners equity
Journalize and post the closing entries to their respective T accounts.
Prepare the company’s post-closing trial balance for 2020.

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