The following information appies to the questions displayed below) Tunstall, Inc
ID: 2331959 • Letter: T
Question
The following information appies to the questions displayed below) Tunstall, Inc., period on December 31 a small service company, keeps its recoeds without the heip of an accountant. Afher much effort, an outside accountent prepared the following unadjusted trial balance as of the end of the annusl accounting small Cash Accounts recelvable 5 46700 300 Prepaid Insurance Service trucks S 8.900 0.960 Other assets Accounts payable Wages payabie ncome taxes payable Note payable (3 years; ,0% interest due each December 39 Common stock (4,200 shares ounstanding) Additional paidHin capital Retained earnings 2,240 5,000 5,900 0,570 33370 Remaining expenses tnot detaled: excludes income tax) ncome tax expense Totals Data not yet recorded at December 3t included a. The supplies count on December 31 refected $220 in remaining supplies on hand to be used in the et b. Insurance expired during the current year $750 c Depreciation expense for the current year, $3,300 d. Wages earned by employees not yet paid on December 3 $540 e Income tax expense, $5,.580 2.00 pointsExplanation / Answer
Answer:
1
Transaction
General Journal
Debit
Credit
a.
Supplies expense (590-220)
370
Supplies
370
b.
Insurance expense
750
Prepaid insurance
750
c.
Depreciation expense
3,300
Accumulated depreciation
3,300
d.
Wages expense
540
Wages payable
540
e.
Income taxes expense
5,580
Income taxes payable
5,580
2
TUNSTALL, INC.
Income Statement
For the Year Ended December 31,
Operating revenue:
Service revenue
$70,570
Operating expenses:
Insurance expense
750
Supplies expense
370
Wages expense
540
Depreciation expense
3,300
Remaining expenses (not detailed)
33,170
Total expenses
38,130
Net income
$32,440
Earnings per share
$7.72
3
TUNSTALL, INC.
Balance Sheet
At December 31,
Assets
Liabilities and Stockholders’ Equity
Current assets:
Current liabilities:
Cash
46,700
Accounts payable
2,240
Accounts receivable
11,700
Wages payable
540
Supplies
220
Income taxes payable
5,580
Total current assets
58,620
Total current liabilities
8,360
Service trucks
17,700
Notes payable, long-term
15,000
Accumulated depreciation
(12,200)
Other assets
10,960
Total liabilities
23,360
Stockholders' equity:
Common stock
1,896
Additional paid-in capital
17,064
Retained earnings
32,760
Total stockholders' equity
51,720
Total assets
$ 75,080
Total liabilities and stockholders' equity
$ 75,080
4
General Journal
Debit
Credit
Service revenue
$70,570
Retained earnings
26,860
Supplies expense
370
Insurance expense
750
Depreciation expense
3,300
Wages expense
540
Remaining expenses (not detailed)
33,170
Income taxes expense
5,580
Transaction
General Journal
Debit
Credit
a.
Supplies expense (590-220)
370
Supplies
370
b.
Insurance expense
750
Prepaid insurance
750
c.
Depreciation expense
3,300
Accumulated depreciation
3,300
d.
Wages expense
540
Wages payable
540
e.
Income taxes expense
5,580
Income taxes payable
5,580
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