Problem 2 Faisal Repairs and Services has the following unadjusted balance at the end of the first year. Faisal Repairs and Services Unadjusted Trial Balance June 30, 2020 Accounts Debit Credit Cash Account Receivable Prepaid Insurance Supplies Equipment Account Payable Unearned Revenues Capital Drawings Service Revenues Wages Expenses Rent Expense Utilities Expenses 12,350 50,000 17,500 15,200 148,700 19,750 18,000 169,200 18,000 295,000 94,500 72,000 65,600 Miscellancous Expenses Total 8,100 501,950 501,950 Additional information: 1. Revenues earned but unbilled on June 30 were OMR 8,000. 2. Supplies on hand on June 30 were OMR 4,500. 3. Insurance expense for the year, OMR 3,200. 4. Unearned Revenues on June 30th were OMR 6,000. 5. Unpaid wages accerued on June 30 were OMR 3,800. Required: Prepare the necessary adjusting entries on 30 June 2020. Determine the balance of the accounts affected by the adjusting entries and prepare the adjusted trial balance.

Problem 2 Faisal Repairs and Services has the following unadjusted balance at the end of the first year. Faisal Repairs and Services Unadjusted Trial Balance June 30, 2020 Accounts Debit Credit Cash Account Receivable Prepaid Insurance Supplies Equipment Account Payable Unearned Revenues Capital Drawings Service Revenues Wages Expenses Rent Expense Utilities Expenses 12,350 50,000 17,500 15,200 148,700 19,750 18,000 169,200 18,000 295,000 94,500 72,000 65,600 Miscellancous Expenses Total 8,100 501,950 501,950 Additional information: 1. Revenues earned but unbilled on June 30 were OMR 8,000. 2. Supplies on hand on June 30 were OMR 4,500. 3. Insurance expense for the year, OMR 3,200. 4. Unearned Revenues on June 30th were OMR 6,000. 5. Unpaid wages accerued on June 30 were OMR 3,800. Required: Prepare the necessary adjusting entries on 30 June 2020. Determine the balance of the accounts affected by the adjusting entries and prepare the adjusted trial balance.

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter4: Completing The Accounting Cycle

Section: Chapter Questions

Problem 4.24EX: Adjustment data on an end-of-period spreadsheet Alert Security Services Co. offers security services...

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Adjustments for unearned and accrued fees The balance in the unearned fees account, before adjustment at the end of the year, is $900,000. Of these fees, $775,000 have been earned. In addition, $289,500 of fees have been earned hut not hilled to clients. What are the adjustments (a) to adjust the unearned fees account and (h) to record the accrued fees? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease.
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Brief Exercise 3-32 Adjusting Entries-Deferrals Tyndal Company had the following items that required adjustment at December 31, 2019. Purchased equipment for $40,000 on January 1, 2019. Tyndal estimates annual depreciation to be $3,100. Paid $2,400 for a 2-year insurance policy on July 1, 2019. The amount was debited to Pre-paid Insurance when paid. Collected $1,200 rent for the period December 1, 2019 to March 30, 2020. The amount was credited to Unearned Service Revenue when received. Required: Prepare the adjusting entries needed at December 31. CONCEPTUAL CONNECTION What is the effect on the financial statements if these adjusting entries were not made?
Adjustment process and financial statements Adjustment data for Ms. Ellen’s Laundry Inc. for the year ended December 31, 20Y8. are as follows: a. Wages accrued but not paid at December 31. $2150 b. Depreciation of equipment during the year. $12500 c. Laundry supplies on hand at December 31. $1,500 d. Insurance premiums expired. $4600 Instructions 2. Prepare an income statement and statement of stockholders equity for the year ended December 31. 20Y8. The common stock balance as of January 1. 20Y8. was $25000. The retained earnings balance as of January 1, 20Y8, was $101,500.
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Adjustment data on an end-of-period spreadsheet Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepared on the following end-of-period spreadsheet for the year ended October 31, 2019: Accum. Depr.Equipment 4 Accounts Payable 36 Wages Payable 0 Brenda Schultz, Capital 260 Brenda Schultz, Drawing 8 Fees Earned 200 Wages Expense 110 Rent Expense 12 Insurance Expense 0 Utilities Expense 6 Supplies Expense 0 Depreciation Expense 0 Miscellaneous Expense 2 500 500 The data for year-end adjustments are as follows: a.Fees earned but not yet billed, 13 b.Supplies on hand, 4. c.Insurance premiums expired, 10. d.Depreciation expense, 3. e.Wages accrued but not paid, 1. Enter the adjustment data and place the balances in the Adjusted Trial Balance columns.
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Problem 1-60A Income Statement and Balance Sheet The following information for Rogers Enterprises is available at December 31, 2019 and includes all of Rogers financial statement amounts except retained earnings: Required: Prepare a single-step income statement and a c1assified balance sheet for the year ending December 31, 2019, for Rogers.
Income: 27,350 accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet The unadjusted trial balance of La Mesa Laundry at August 31, 20Y5, the end of the fiscal year, follows: The data needed to determine ear-end adjustments are as follows: (a) Wages accrued but not paid at August 31 are 2,200. (b) Depreciation of equipment during the year it 8,150 (c) Laundry supplies on hand at August 31 are 2,000. (d) Insurance premiums expired during the year are 5,300. Instructions 1. For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as Aug. 51 Bal. In addition, add T accounts for Wages Payable. Depreciation Expense, Laundry Supplies Expense, and Insurance Expense. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (1) as needed. 3. Journalize and post the adjusting entries. Identify the adjustments by Adj. and the new balances as Adj. Bal. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of stockholders equity, and a balance sheet. During the year ended August 51, 20Y5, common stock of 3,000 was issued. 6. Journalize and post the closing entries. Identify the closing entries by Clos. 7. Prepare a post-closing trial balance.
Cornerstone Exercise 3-18 Accrued Expense Adjusting Entries Manning Manufacturing Inc. had the following items that require adjustment at year end. Salaries of $5,320 that were earned in December are unrecorded and unpaid. Used $1,970 Of utilities in December, which are unrecorded and unpaid. Interest of $925 on a note payable has not been or paid. Required: Prepare the adjusting entries needed at December 31. What is the effect on the financial statements if these adjusting entries are not made?
Net Income: 51,150 Ledger accounts, adjusting entries, financial statements, and closing entries; optional spreadsheet The unadjusted trial balance of Lakota Freight Co. at March 31, 20Y4, the end of the year, follows: The data needed to determine year-end adjustments are as follows (a) Supplies on hand at March 31 arc 7,500 (b) Insurance premiums expired during year are 1,800. (c) Depreciation of equipment during year is 8,350 (d) Depreciation of trucks during year is 6,200 (e) Wages accrued but not paid at March 31 are 600 Instructions 1. For each account listed in the trial balance, enter the balance in the appropriate Balance column of a four-column account and place a check mark () in the Posting Reference column. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet Add the account listed in part (3) as needed. 3-Journalize and post the adjusting entries, inserting balances in the accounts affected. Record the adjusting entries on Page 26 of the journal. The following additional accounts from Lakota Freight Co.s clean of accounts should lie used: Wages Payable, 22; Supplies Expense, 52; Depreciation ExpenseEquipment. 55; Depreciation ExpenseTrucks. 56; Insurance Expense. 57. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of stockholders equity, and a balance sheet. During the year ended March 31, 20Y4, additional common stink of 6,000 was issued 6. Journalize and post the closing entries. Record the closing entries on Page 27 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 7. Prepare a post-closing trial balance.
Adjustments and errors At the end of May, the first month of operations, the following selected data were taken from the financial statements of Julie Mortenson, Attorney at Law, PC.: In preparing the financial statements, adjustments for the following data were overlooked: a. Unbilled fees earned at May 31, $9.700 h. Depreciation of equipment for May, $8,000 c. Accrued wages at May 31. $1,150 d. Supplies used during May, $975 Instructions Determine the correct amount of net income for May and the total assets, liabilities, and stockholders’ equity at May 31. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table similar to the one shown below. Adjustment (a) is presented as an example.