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Prepare the necessary adjusting journal entries to record each of the above adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5.

Prepare the necessary adjusting journal entries to record each of the above adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5.

Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter2: Asset And Liability Valuation And Income Recognition
Section: Chapter Questions
Problem 20PC: Analyzing Transactions. Using the analytical framework, indicate the effect of the following related...
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Sunshine Company began operations on January 1, 2020. In its first year, the following transactions occurred: 1. Issued common shares for $308,000 cash. 2. Borrowed $64,000 from the bank for a five-year term. 3. Purchased equipment for $202,000 cash. 4. Purchased supplies, on account, for $6,000. 5. Sales on account amounted to $106,000. 6. Collected $82,000 from customers for services provided. 7. Paid wages of $31,000 to employees. 8. Paid $21,500 for utilities (telephone, electricity, heat, & water). For Sunshine Company, the following adjustments are required prior to them being able to prepare financial statements for the year ended December 31, 2020. 1. The bank loan was taken out on January 1st and has an interest rate of 8%. Interest is due January 1st of the following year. 2. The equipment was purchased on January 1st and has an estimated useful life of 10 years and a residual value of $12,500. The company uses the straight-line depreciation method. 3. Wages in the amount of $1,500 were owed at year end. 4. Rent in the amount of $11,000 was due at year end but was not recorded or paid. 5. A physical count at year end revealed that only $1,700 of the supplies remained on hand.
Transcribed Image Text:Sunshine Company began operations on January 1, 2020. In its first year, the following transactions occurred: 1. Issued common shares for $308,000 cash. 2. Borrowed $64,000 from the bank for a five-year term. 3. Purchased equipment for $202,000 cash. 4. Purchased supplies, on account, for $6,000. 5. Sales on account amounted to $106,000. 6. Collected $82,000 from customers for services provided. 7. Paid wages of $31,000 to employees. 8. Paid $21,500 for utilities (telephone, electricity, heat, & water). For Sunshine Company, the following adjustments are required prior to them being able to prepare financial statements for the year ended December 31, 2020. 1. The bank loan was taken out on January 1st and has an interest rate of 8%. Interest is due January 1st of the following year. 2. The equipment was purchased on January 1st and has an estimated useful life of 10 years and a residual value of $12,500. The company uses the straight-line depreciation method. 3. Wages in the amount of $1,500 were owed at year end. 4. Rent in the amount of $11,000 was due at year end but was not recorded or paid. 5. A physical count at year end revealed that only $1,700 of the supplies remained on hand.
Prepare the necessary adjusting journal entries to record each of the above adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. Prepare an Adjusted Trial Balance. (Do not list those accounts that have zero ending balance.) Sunshine Company Adjusted Trial Balance December 31, 2020 Debit Credit 2$ Totals $ $
Transcribed Image Text:Prepare the necessary adjusting journal entries to record each of the above adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. Prepare an Adjusted Trial Balance. (Do not list those accounts that have zero ending balance.) Sunshine Company Adjusted Trial Balance December 31, 2020 Debit Credit 2$ Totals $ $
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