FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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repare an adjusted trial balance. If an amount

Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; Optional Spreadsheet

The unadjusted trial balance of Recessive Interiors at January 31, 2019, the end of the year, follows:

Recessive Interiors
Unadjusted Trial Balance
January 31, 2019
  Account No. Debit Balances Credit Balances
Cash   11 13,100      
Supplies   13 8,000      
Prepaid Insurance   14 7,500      
Equipment   16 113,000      
Accumulated Depreciation-Equipment   17     12,000  
Trucks   18 90,000      
Accumulated Depreciation-Trucks   19     27,100  
Accounts Payable   21     4,500  
Jeanne McQuay, Capital   31     126,400  
Jeanne McQuay, Drawing   32 3,000      
Service Revenue   41     155,000  
Wages Expense   51 72,000      
Rent Expense   52 7,600      
Truck Expense   53 5,350      
Miscellaneous Expense   59 5,450      
      325,000   325,000  

The following additional accounts from Recessive Interiors' chart of accounts should be used: Wages Payable, 22; Depreciation Expense-Equipment, 54; Supplies Expense, 55; Depreciation Expense-Trucks, 56; Insurance Expense, 57.

The data needed to determine year-end adjustments are as follows:

  1. Supplies on hand at January 31 are $2,850.
  2. Insurance premiums expired during the year are $3,150.
  3. Depreciation of equipment during the year is $5,250.
  4. Depreciation of trucks during the year is $4,000.
  5. Wages accrued but not paid at January 31 are $900.

Use the attached spreadsheet to complete parts 2, 3, and 6. Click on the Spreadsheet icon above to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

Required:

1.  For each account listed in the trial balance, notice that the balance has been entered in the appropriate general ledger account balance column of the spreadsheet. Posting to the general ledger will take place in step 3 and step 6.

2.  (Optional) In the attached spreadsheet, notice that the unadjusted trial balance amounts have been entered. Enter the adjusting entries and complete the worksheet.

3.  Journalize the adjusting entries on page 26 of the journal. Then post to the appropriate accounts in the general ledger in the attached spreadsheet, inserting balances in the accounts affected.


Journal PAGE 26
Date Account Post. Ref. Debit Credit
         
a.        
         
       
b.        
         
         
c.        
         
         
d.        
         
         
e.        
         

4.  Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.


Recessive Interiors
Adjusted Trial Balance
January 31, 2019
  Debit Balances Credit Balances
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

5.  Prepare an income statement.


Recessive Interiors
Income Statement
For the Year Ended January 31, 2019
    $
Expenses:    
  $  
     
     
     
     
     
     
     
Total expenses    
    $

Prepare a Statement of Owner's Equity (no additional investments were made during the year.)


Recessive Interiors
Statement of Owner's Equity
For the Year Ended January 31, 2019
    $
  $  
     
     
    $

Prepare a balance sheet.


Recessive Interiors
Balance Sheet
January 31, 2019
Assets Liabilities
Current assets:       Current liabilities:    
    $     $  
             
        Total liabilities   $
Total current assets     $      
Property, plant, and equipment:       Owner's Equity
  $          
    $        
  $        
             
Total property, plant, and equipment            
Total assets     $ Total liabilities and owner's equity   $

6. Journalize the closing entries on page 27 of the journal. Then post to the general ledger in the attached spreadsheet. For a compound transaction, if an amount box does not require an entry, leave it blank.


Journal PAGE 27
Date Account Post. Ref. Debit Credit
Close expenses, revenues
&income/loss
       
         
         
         
         
         
         
         
         
         
         
Close drawing        
         

7.  Prepare a post-closing trial balance. If an amount box does not require an entry, leave it blank.


Recessive Interiors
Post-Closing Trial Balance
January 31, 2019
  Debit Balances Credit Balances
     
     
     
     
     
     
     
     
     
     
Totals    
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