At the end of 2016, Richards Company prepared a trial balance, recorded and post
ID: 2333776 • Letter: A
Question
At the end of 2016, Richards Company prepared a trial balance, recorded and posted its adjusting entries, and then prepared an adjusted trial balance. Selected accounts and account balances from the trial balance and adjusted trial balance are as follows: Partial Trial Balance Partial Adjusted Trial Balance (Debit) (Credit) (Debit) (Credit) Depreciation Expense $0 $3,960 Interest Payable $0 $810 Bad Debts Expense 0 410 Utilities Expense 1,480 1,682 Rental Revenue 1,650 2,635 Income Tax Expense 0 2,740 Prepaid Insurance 1,742 1,380 Office Salaries Payable 0 540 Rent Expense 0 800 Accumulated Depreciation 14,820 18,780 Interest Receivable 0 320 Prepaid Rent 1,600 800 Office Salaries Expense 5,600 6,140 Income Taxes Payable 0 2,740 Insurance Expense 300 662 Allowance for Doubtful Accounts 130 540 Interest Expense 0 810 Unearned Rent 600 0 Utilities Payable 0 202 Interest Revenue 620 940 Sales Salaries Expense 7,300 7,850 Office Supplies 1,150 700 Rent Receivable 0 385 Advances to Salespersons 770 220 Office Supplies Expense 0 450 Additional information: 1. Interest Receivable is due March 1, 2017 2. Interest Payable is due May 14, 2018 Required: 1. By comparing the partial trial balance to the partial adjusted trial balance, determine the adjusting entries that the company made on December 31, 2016. Prepare your answers in general journal form. 2. Assuming that the company uses reversing entries, indicate which adjusting entries should be reversed.
At the end of 2016, Richards Company prepared a trial balance, recorded and posted its adjusting entries, and then prepared an adjusted trial balance. Selected accounts and account balances from the trial balance and adjusted trial balance are as follows: Partial Trial Balance Partial Adjusted Trial Balance (Debit) (Credit) (Debit) (Credit) Depreciation Expense $0 $3,960 Interest Payable $0 $810 Bad Debts Expense 0 410 Utilities Expense 1,480 1,682 Rental Revenue 1,650 2,635 Income Tax Expense 0 2,740 Prepaid Insurance 1,742 1,380 Office Salaries Payable 0 540 Rent Expense 0 800 Accumulated Depreciation 14,820 18,780 Interest Receivable 0 320 Prepaid Rent 1,600 800 Office Salaries Expense 5,600 6,140 Income Taxes Payable 0 2,740 Insurance Expense 300 662 Allowance for Doubtful Accounts 130 540 Interest Expense 0 810 Unearned Rent 600 0 Utilities Payable 0 202 Interest Revenue 620 940 Sales Salaries Expense 7,300 7,850 Office Supplies 1,150 700 Rent Receivable 0 385 Advances to Salespersons 770 220 Office Supplies Expense 0 450 Additional information: 1. Interest Receivable is due March 1, 2017 2. Interest Payable is due May 14, 2018 Required: 1. By comparing the partial trial balance to the partial adjusted trial balance, determine the adjusting entries that the company made on December 31, 2016. Prepare your answers in general journal form. 2. Assuming that the company uses reversing entries, indicate which adjusting entries should be reversed.
At the end of 2016, Richards Company prepared a trial balance, recorded and posted its adjusting entries, and then prepared an adjusted trial balance. Selected accounts and account balances from the trial balance and adjusted trial balance are as follows: Partial Trial Balance Partial Adjusted Trial Balance (Debit) (Credit) (Debit) (Credit) Depreciation Expense $0 $3,960 Interest Payable $0 $810 Bad Debts Expense 0 410 Utilities Expense 1,480 1,682 Rental Revenue 1,650 2,635 Income Tax Expense 0 2,740 Prepaid Insurance 1,742 1,380 Office Salaries Payable 0 540 Rent Expense 0 800 Accumulated Depreciation 14,820 18,780 Interest Receivable 0 320 Prepaid Rent 1,600 800 Office Salaries Expense 5,600 6,140 Income Taxes Payable 0 2,740 Insurance Expense 300 662 Allowance for Doubtful Accounts 130 540 Interest Expense 0 810 Unearned Rent 600 0 Utilities Payable 0 202 Interest Revenue 620 940 Sales Salaries Expense 7,300 7,850 Office Supplies 1,150 700 Rent Receivable 0 385 Advances to Salespersons 770 220 Office Supplies Expense 0 450 Additional information: 1. Interest Receivable is due March 1, 2017 2. Interest Payable is due May 14, 2018 Required: 1. By comparing the partial trial balance to the partial adjusted trial balance, determine the adjusting entries that the company made on December 31, 2016. Prepare your answers in general journal form. 2. Assuming that the company uses reversing entries, indicate which adjusting entries should be reversed.
Explanation / Answer
1 The following are the adjustment entries RC made Dec 31 2016 Date Particulars Dr Amount Cr Amount Dec-16 Depreciation Exp $3,960 To Accumulated Dep $3,960 to record the adjustment entry made for depreciation Dec-16 Interest Exp $810 To Interest payable $810 to record at which is not yet paid will be credited Dec-16 Bad Debts $410 To Allowance for Doubtful Debts $410 To record the bad debts allowed Dec-16 Utilities Exp $202 To Utilities payable $202 to record utilities exp Dec-16 Unearned rent $600 To Rent Revenue $600 to record unearned rent tr to rental revenue Dec-16 Rent Receivable $385 To Rent Revenue $385 to record rent receivable for the yr Dec-16 Income Tax Expenses $2,740 To Income tax Payable $2,740 To Record income tax payable for the yr Dec-16 Insurance Exp $362 To Prepaid Insurance $362 to record insurance expenses prepaid Dec-16 Office Salaries Exp $540 To Office Salaries Payable $540 to record office salaries payable for the yr Dec-16 Rent Exp $800 To prepaid Rent $800 being rent paid in advance Dec-16 Interest Receivable $320 To Interest Revenue $320 being interest receivable Dec-16 Sales Salaries Exp $550 To Advance to Sales persons $550 to record sales persons advances tr to salaries Dec-16 Office Supplies Exp $450 To office Supplies $450 to record the adjustment entry made for office supplies 2 Except adjustment entries for depreciation exp of $3960 ,bad debts exp of $410 and interest payable on May 14 2018 all the remaining adjustment entries will be reversed on jan 2017 Date Particulars Dr Amount Cr Amount Jan-17 Utilities Payable $202 To Utilites Exp $202 Being utilities exp payable Jan-17 Rent revenue $600 To Unearned Rent $600 being unearned rent tr to rental revenue Jan-17 Rent revenue $385 To Rent Receivable $385 being rent receivable for the yr Jan-17 Income Tax payable $2,740 To income tax Exp $2,740 being the income tax payable for the yr
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