T Accounts 1. Cash A/c PARTICULAR DEBIT PARTICULAR CREDIT To Capital 180,000 By Supplies 19,000 To service revenue 5,500 By Prepaid Insurance 28,000 To Service revenue 15,000 By Salary 65,700 To Unearned service revenue 12,000 By Office Rent 85,000 To Accounts Receivable 35,500 By Accounts Payable 20,800 By Drawings 15,300 By Balance C/d 14,200 Total 248,000 Total 248,000 2. Truck A/c PARTICULAR DEBIT PARTICULAR CREDIT To Capital 250,000 By Balance c/d 250,000 Total 250,000 Total 250,000 3. Capital A/c PARTICULAR DEBIT PARTICULAR CREDIT To Balance c/d 430,000 By Cash 180,000 By Truck 250,000 Total 430,000 Total 430,000 4. Supplies A/c PARTICULAR DEBIT PARTICULAR CREDIT To Cash 19,000 By Balance C/d 19,000 Total 19,000 Total 19,000 5. Prepaid Insurance PARTICULAR DEBIT PARTICULAR CREDIT To Cash 28,000 By Balance c/d 28,000 Total 28,000 Total 28,000 6. Service Revenue PARTICULAR DEBIT PARTICULAR CREDIT To Balance C/d 60,500 By Cash 5,500 By Accounts receivable 35,500 By Cash 15,000 By Accounts receivable 4,500 Total 60,500 Total 60,500 7. Accounts receivable PARTICULAR DEBIT PARTICULAR CREDIT To Service revenue 35,500 By Cash 35,500 To Service revenue 4,500 By Balance c/d 4,500 Total 40,000 Total 40,000 8. Salary Expense PARTICULAR DEBIT PARTICULAR CREDIT To Cash 65,700 By Balance C/d 65,700 Total 65,700 Total 65,700 9. Unearned Service Revenue PARTICULAR DEBIT PARTICULAR CREDIT To Balance C/d 12,000 By Cash 12,000 Total 12,000 Total 12,000 10. Fuel Expense PARTICULAR DEBIT PARTICULAR CREDIT To Accounts Payable 29,800 By Balance c/d 29,800 Total 29,800 Total 29,800 11. Accounts Payable PARTICULAR DEBIT PARTICULAR CREDIT To Cash 20,800 By Fuel Expense 29,800 To Balance c/d 9,000 Total 29,800 Total 29,800 12. Office Rent PARTICULAR DEBIT PARTICULAR CREDIT To Cash 85,000 By Balance C/d 85,000 Total 85,000 Total 85,000 13. Drawings PARTICULAR DEBIT PARTICULAR CREDIT To Cash 15,300 By Balance C/d 15,300 Total 15,300 Total 15,300 Step 3 Unadjusted Trial Balance PARTICULAR DEBIT CREDIT Cash 14,200 Accounts Receivable 4,500 Supplies 19,000 Prepaid insurance 28,000 Truck 250,000 Capital 430,000 Unearned Service revenue 12,000 Accounts Payable 9,000 Service revenue 60,500 Salary Expense 65,700 Fuel Expense 29,800 Office Rent 85,000 Drawings 15,300 Total 511,500 511,500 Required: The following additional information relates to the company’s 2020 financial affairs and was provided in the first week of 2021 and are to be record same as adjusting entries:( Key each transaction by its letter and narrations are not required): Accrued salary expense, $19,500. Depreciation expense, $6,500. Prepaid insurance expired, $24,000. Supplies on hand, $2,500. Unearned service revenue earned during 2020, $7,000. Use the transactions in requirement 4 to update the affected T accounts. Prepare the company’s adjusted trial balance, income statement, statement of owner’s equity and classified balance sheet for 2020. Journalize and post the closing entries to their respective T accounts. Prepare the company’s post-closing trial balance for 2020.

T Accounts 1. Cash A/c PARTICULAR DEBIT PARTICULAR CREDIT To Capital 180,000 By Supplies 19,000 To service revenue 5,500 By Prepaid Insurance 28,000 To Service revenue 15,000 By Salary 65,700 To Unearned service revenue 12,000 By Office Rent 85,000 To Accounts Receivable 35,500 By Accounts Payable 20,800 By Drawings 15,300 By Balance C/d 14,200 Total 248,000 Total 248,000 2. Truck A/c PARTICULAR DEBIT PARTICULAR CREDIT To Capital 250,000 By Balance c/d 250,000 Total 250,000 Total 250,000 3. Capital A/c PARTICULAR DEBIT PARTICULAR CREDIT To Balance c/d 430,000 By Cash 180,000 By Truck 250,000 Total 430,000 Total 430,000 4. Supplies A/c PARTICULAR DEBIT PARTICULAR CREDIT To Cash 19,000 By Balance C/d 19,000 Total 19,000 Total 19,000 5. Prepaid Insurance PARTICULAR DEBIT PARTICULAR CREDIT To Cash 28,000 By Balance c/d 28,000 Total 28,000 Total 28,000 6. Service Revenue PARTICULAR DEBIT PARTICULAR CREDIT To Balance C/d 60,500 By Cash 5,500 By Accounts receivable 35,500 By Cash 15,000 By Accounts receivable 4,500 Total 60,500 Total 60,500 7. Accounts receivable PARTICULAR DEBIT PARTICULAR CREDIT To Service revenue 35,500 By Cash 35,500 To Service revenue 4,500 By Balance c/d 4,500 Total 40,000 Total 40,000 8. Salary Expense PARTICULAR DEBIT PARTICULAR CREDIT To Cash 65,700 By Balance C/d 65,700 Total 65,700 Total 65,700 9. Unearned Service Revenue PARTICULAR DEBIT PARTICULAR CREDIT To Balance C/d 12,000 By Cash 12,000 Total 12,000 Total 12,000 10. Fuel Expense PARTICULAR DEBIT PARTICULAR CREDIT To Accounts Payable 29,800 By Balance c/d 29,800 Total 29,800 Total 29,800 11. Accounts Payable PARTICULAR DEBIT PARTICULAR CREDIT To Cash 20,800 By Fuel Expense 29,800 To Balance c/d 9,000 Total 29,800 Total 29,800 12. Office Rent PARTICULAR DEBIT PARTICULAR CREDIT To Cash 85,000 By Balance C/d 85,000 Total 85,000 Total 85,000 13. Drawings PARTICULAR DEBIT PARTICULAR CREDIT To Cash 15,300 By Balance C/d 15,300 Total 15,300 Total 15,300 Step 3 Unadjusted Trial Balance PARTICULAR DEBIT CREDIT Cash 14,200 Accounts Receivable 4,500 Supplies 19,000 Prepaid insurance 28,000 Truck 250,000 Capital 430,000 Unearned Service revenue 12,000 Accounts Payable 9,000 Service revenue 60,500 Salary Expense 65,700 Fuel Expense 29,800 Office Rent 85,000 Drawings 15,300 Total 511,500 511,500 Required: The following additional information relates to the company’s 2020 financial affairs and was provided in the first week of 2021 and are to be record same as adjusting entries:( Key each transaction by its letter and narrations are not required): Accrued salary expense, $19,500. Depreciation expense, $6,500. Prepaid insurance expired, $24,000. Supplies on hand, $2,500. Unearned service revenue earned during 2020, $7,000. Use the transactions in requirement 4 to update the affected T accounts. Prepare the company’s adjusted trial balance, income statement, statement of owner’s equity and classified balance sheet for 2020. Journalize and post the closing entries to their respective T accounts. Prepare the company’s post-closing trial balance for 2020.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2PB: To demonstrate the difference between cash account activity and accrual basis profits (net income),...

See similar textbooks

Related questions

Question

T Accounts

1. Cash A/c

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Capital	180,000	By Supplies	19,000
To service revenue	5,500	By Prepaid Insurance	28,000
To Service revenue	15,000	By Salary	65,700
To Unearned service revenue	12,000	By Office Rent	85,000
To Accounts Receivable	35,500	By Accounts Payable	20,800
		By Drawings	15,300
		By Balance C/d	14,200
Total	248,000	Total	248,000

2. Truck A/c

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Capital	250,000	By Balance c/d	250,000

Total	250,000	Total	250,000

3. Capital A/c

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Balance c/d	430,000	By Cash	180,000
		By Truck	250,000

Total	430,000	Total	430,000

4. Supplies A/c

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Cash	19,000	By Balance C/d	19,000

Total	19,000	Total	19,000

5. Prepaid Insurance

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Cash	28,000	By Balance c/d	28,000

Total	28,000	Total	28,000

6. Service Revenue

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Balance C/d	60,500	By Cash	5,500
		By Accounts receivable	35,500
		By Cash	15,000
		By Accounts receivable	4,500
Total	60,500	Total	60,500

7. Accounts receivable

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Service revenue	35,500	By Cash	35,500
To Service revenue	4,500	By Balance c/d	4,500

Total	40,000	Total	40,000

8. Salary Expense

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Cash	65,700	By Balance C/d	65,700

Total	65,700	Total	65,700

9. Unearned Service Revenue

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Balance C/d	12,000	By Cash	12,000

Total	12,000	Total	12,000

10. Fuel Expense

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Accounts Payable	29,800	By Balance c/d	29,800

Total	29,800	Total	29,800

11. Accounts Payable

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Cash	20,800	By Fuel Expense	29,800
To Balance c/d	9,000

Total	29,800	Total	29,800

12. Office Rent

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Cash	85,000	By Balance C/d	85,000

Total	85,000	Total	85,000

13. Drawings

PARTICULAR	DEBIT	PARTICULAR	CREDIT

To Cash	15,300	By Balance C/d	15,300

Total	15,300	Total	15,300

Step 3

Unadjusted Trial Balance

PARTICULAR	DEBIT	CREDIT

Cash	14,200
Accounts Receivable	4,500
Supplies	19,000
Prepaid insurance	28,000
Truck	250,000
Capital		430,000
Unearned Service revenue		12,000
Accounts Payable		9,000
Service revenue		60,500
Salary Expense	65,700
Fuel Expense	29,800
Office Rent	85,000
Drawings	15,300

Total	511,500	511,500

Required:

The following additional information relates to the company’s 2020 financial affairs and was provided in the first week of 2021 and are to be record same as adjusting entries:( Key each transaction by its letter and narrations are not required):