Concept explainers
Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted
Accounts | Debits | Credits | |
Cash | $ 10,300 | ||
Accounts Receivable | 9,500 | ||
Supplies | 2,000 | ||
Prepaid Rent | 7,200 | ||
Equipment | 90,000 | ||
$ 12,000 | |||
Accounts Payable | 7,700 | ||
Salaries Payable | -0- | ||
Interest Payable | -0- | ||
Utilities Payable | -0- | ||
Notes Payable | 20,000 | ||
Common Stock | 45,000 | ||
19,000 | |||
Service Revenue | 42,200 | ||
Salaries Expense | 24,500 | ||
Interest Expense | -0- | ||
Rent Expense | -0- | ||
Supplies Expense | -0- | ||
Utilities Expense | 2,400 | ||
Depreciation Expense | -0- | ||
Totals | $145,900 | $145,900 |
Information necessary to prepare the year-end
a. Depreciation of equipment for the year is $6,000.
b. Accrued salaries at year-end should be $2,100.
c. Crimson Tide borrows $20,000 on September 1, 2018. The principal is due to be repaid in four years. Interest is payable each August 31 at an annual rate of 12%.
d. Unused supplies at year-end total $700. Crimson Tide debits Supplies at the time supplies are purchased.
e. Crimson Tide opens a second studio by paying for one war of rent in advance on April 1, 2018, for $7,200 ($600 per month) debiting Prepaid Rent.
f. Unpaid utilities for December total $200.
Required:
Record the necessary adjusting entries on December 31, 2018.
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FINANCIAL ACCOUNTING W/ACCESS >CI<
- uired information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] The following is the adjusted year-end trial balance at December 31, 2018, of Wilson Trucking Company. Account Title Debit Credit Cash $ 7,400 Accounts receivable 17,000 Office supplies 3,800 Trucks 176,000 Accumulated depreciation—Trucks $ 35,000 Land 76,900 Accounts payable 12,700 Interest payable 4,700 Long-term notes payable 48,000 Common stock 21,100 Retained earnings, December 31, 2017 154,000 Dividends 19,800 Trucking fees earned 133,000 Depreciation expense—Trucks 22,500 Salaries expense 64,000 Office supplies expense 8,500 Repairs expense—Trucks 12,600 Totals $ 408,500 $ 408,500 Exercise 3-8 Preparing financial…arrow_forwardPREPARE ADJUSTED TRIAL BALANCE BY USING THE INFORMATION On December 1, 2020, Sheridan Distributing Company had the following account balances. Debit Credit Cash $7,500 Accumulated Depreciation—Equipment $2,640 Accounts Receivable 4,900 Accounts Payable 4,500 Inventory 12,200 Salaries and Wages Payable 1,000 Supplies 1,300 Owner’s Capital 44,160 Equipment 26,400 $52,300 $52,300 During December, the company : Dec. 6 Paid $1,800 for salaries and wages due employees, of which $800 is for December and $1,000 is for November salaries and wages payable. 8 Received $1,900 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6,500. The cost of the merchandise sold was $3,900. 13 Purchased merchandise on account from Boehm Co. $9,000, terms 2/10, n/30. 15 Purchased supplies for cash $1,600. 18 Sold merchandise on account $12,800, terms 3/10, n/30. The…arrow_forwardUse the following information for the Exercises below. [The following information applies to the questions displayed below.] The following is the adjusted year-end trial balance at December 31, 2018, of Wilson Trucking Company. Account Title Debit Credit Cash $ 7,400 Accounts receivable 17,000 Office supplies 3,800 Trucks 176,000 Accumulated depreciation—Trucks $ 35,000 Land 76,900 Accounts payable 12,700 Interest payable 4,700 Long-term notes payable 48,000 Common stock 21,100 Retained earnings, December 31, 2017 154,000 Dividends 19,800 Trucking fees earned 133,000 Depreciation expense—Trucks 22,500 Salaries expense 64,000 Office supplies expense 8,500 Repairs expense—Trucks 12,600 Totals $ 408,500 $ 408,500 Exercise 3-9 Preparing a classified balance sheet…arrow_forward
- Use the following information for the Exercises below. [The following information applies to the questions displayed below.] The following is the adjusted year-end trial balance at December 31, 2018, of Wilson Trucking Company. Account Title Debit Credit Cash $ 7,400 Accounts receivable 17,000 Office supplies 3,800 Trucks 176,000 Accumulated depreciation—Trucks $ 35,000 Land 76,900 Accounts payable 12,700 Interest payable 4,700 Long-term notes payable 48,000 Common stock 21,100 Retained earnings, December 31, 2017 154,000 Dividends 19,800 Trucking fees earned 133,000 Depreciation expense—Trucks 22,500 Salaries expense 64,000 Office supplies expense 8,500 Repairs expense—Trucks 12,600 Totals $ 408,500 $ 408,500 Exercise 3-8 Preparing financial statements LO P3…arrow_forwardThe trial balance of Bramble Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year. Create a worksheet. BRAMBLE FASHION CENTERTrial BalanceNovember 30, 2020 Debit Credit Cash $ 20,000 Accounts Receivable 28,000 Inventory 42,000 Supplies 6,000 Equipment 130,000 Accumulated Depreciation—Equipment $ 25,000 Notes Payable 50,000 Accounts Payable 51,800 Owner’s Capital 88,000 Owner’s Drawings 10,000 Sales Revenue 755,200 Sales Returns and Allowances 8,600 Cost of Goods Sold 497,000 Salaries and Wages Expense 139,500 Advertising Expense 24,000 Utilities Expense 13,500 Maintenance and Repairs Expense 11,500 Freight-out 16,400 Rent Expense 23,500 Totals $970,000 $970,000 Adjustment data: 1. Supplies on hand totaled $2,000.…arrow_forwardThe trial balance of Bramble Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year. Create a worksheet. BRAMBLE FASHION CENTERTrial BalanceNovember 30, 2020 Debit Credit Cash $ 20,000 Accounts Receivable 28,000 Inventory 42,000 Supplies 6,000 Equipment 130,000 Accumulated Depreciation—Equipment $ 25,000 Notes Payable 50,000 Accounts Payable 51,800 Owner’s Capital 88,000 Owner’s Drawings 10,000 Sales Revenue 755,200 Sales Returns and Allowances 8,600 Cost of Goods Sold 497,000 Salaries and Wages Expense 139,500 Advertising Expense 24,000 Utilities Expense 13,500 Maintenance and Repairs Expense 11,500 Freight-out 16,400 Rent Expense 23,500 Totals $970,000 $970,000 Adjustment data: 1. Supplies on hand totaled $2,000.…arrow_forward
- The trial balance of Bramble Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year. Create a worksheet. BRAMBLE FASHION CENTERTrial BalanceNovember 30, 2020 Debit Credit Cash $ 20,000 Accounts Receivable 28,000 Inventory 42,000 Supplies 6,000 Equipment 130,000 Accumulated Depreciation—Equipment $ 25,000 Notes Payable 50,000 Accounts Payable 51,800 Owner’s Capital 88,000 Owner’s Drawings 10,000 Sales Revenue 755,200 Sales Returns and Allowances 8,600 Cost of Goods Sold 497,000 Salaries and Wages Expense 139,500 Advertising Expense 24,000 Utilities Expense 13,500 Maintenance and Repairs Expense 11,500 Freight-out 16,400 Rent Expense 23,500 Totals $970,000 $970,000 Adjustment data: 1. Supplies on hand totaled $2,000.…arrow_forwardPrepare an adjusted trial balance. On December 1, 2020, Sheridan Distributing Company had the following account balances. Debit Credit Cash $7,500 Accumulated Depreciation—Equipment $2,640 Accounts Receivable 4,900 Accounts Payable 4,500 Inventory 12,200 Salaries and Wages Payable 1,000 Supplies 1,300 Owner’s Capital 44,160 Equipment 26,400 $52,300 $52,300 During December, the company completed the following summary transactions. Dec. 6 Paid $1,800 for salaries and wages due employees, of which $800 is for December and $1,000 is for November salaries and wages payable. 8 Received $1,900 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6,500. The cost of the merchandise sold was $3,900. 13 Purchased merchandise on account from Boehm Co. $9,000, terms 2/10, n/30. 15 Purchased supplies for cash $1,600. 18 Sold merchandise on account $12,800,…arrow_forwardThe trial balance of Bramble Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year. BRAMBLE FASHION CENTERTrial BalanceNovember 30, 2020 Debit Credit Cash $ 20,000 Accounts Receivable 28,000 Inventory 42,000 Supplies 6,000 Equipment 130,000 Accumulated Depreciation—Equipment $ 25,000 Notes Payable 50,000 Accounts Payable 51,800 Owner’s Capital 88,000 Owner’s Drawings 10,000 Sales Revenue 755,200 Sales Returns and Allowances 8,600 Cost of Goods Sold 497,000 Salaries and Wages Expense 139,500 Advertising Expense 24,000 Utilities Expense 13,500 Maintenance and Repairs Expense 11,500 Freight-out 16,400 Rent Expense 23,500 Totals $970,000 $970,000 Adjustment data: 1. Supplies on hand totaled $2,000. 2. Depreciation…arrow_forward
- The trial balance of Bramble Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year. BRAMBLE FASHION CENTERTrial BalanceNovember 30, 2020 Debit Credit Cash $ 20,000 Accounts Receivable 28,000 Inventory 42,000 Supplies 6,000 Equipment 130,000 Accumulated Depreciation—Equipment $ 25,000 Notes Payable 50,000 Accounts Payable 51,800 Owner’s Capital 88,000 Owner’s Drawings 10,000 Sales Revenue 755,200 Sales Returns and Allowances 8,600 Cost of Goods Sold 497,000 Salaries and Wages Expense 139,500 Advertising Expense 24,000 Utilities Expense 13,500 Maintenance and Repairs Expense 11,500 Freight-out 16,400 Rent Expense 23,500 Totals $970,000 $970,000 Adjustment data: 1. Supplies on hand totaled $2,000. 2. Depreciation…arrow_forwardThe trial balance of Bramble Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year. BRAMBLE FASHION CENTERTrial BalanceNovember 30, 2020 Debit Credit Cash $ 20,000 Accounts Receivable 28,000 Inventory 42,000 Supplies 6,000 Equipment 130,000 Accumulated Depreciation—Equipment $ 25,000 Notes Payable 50,000 Accounts Payable 51,800 Owner’s Capital 88,000 Owner’s Drawings 10,000 Sales Revenue 755,200 Sales Returns and Allowances 8,600 Cost of Goods Sold 497,000 Salaries and Wages Expense 139,500 Advertising Expense 24,000 Utilities Expense 13,500 Maintenance and Repairs Expense 11,500 Freight-out 16,400 Rent Expense 23,500 Totals $970,000 $970,000 Adjustment data: 1. Supplies on hand totaled $2,000. 2. Depreciation…arrow_forwardThe trial balance of Bramble Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year. BRAMBLE FASHION CENTERTrial BalanceNovember 30, 2020 Debit Credit Cash $ 20,000 Accounts Receivable 28,000 Inventory 42,000 Supplies 6,000 Equipment 130,000 Accumulated Depreciation—Equipment $ 25,000 Notes Payable 50,000 Accounts Payable 51,800 Owner’s Capital 88,000 Owner’s Drawings 10,000 Sales Revenue 755,200 Sales Returns and Allowances 8,600 Cost of Goods Sold 497,000 Salaries and Wages Expense 139,500 Advertising Expense 24,000 Utilities Expense 13,500 Maintenance and Repairs Expense 11,500 Freight-out 16,400 Rent Expense 23,500 Totals $970,000 $970,000 Adjustment data: 1. Supplies on hand totaled $2,000. 2. Depreciation…arrow_forward
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