eptember I T Regaired Prepare the necessary adjusting entries i I Os September I

Question

eptember I T Regaired Prepare the necessary adjusting entries i I Os September I, the company entered into a begnhing Septer $2.700 payment was debited to Prepaid Maintenance 2 Supplies on hand at December 31 are $3,200 3 Usecamed commission fees at December 31 are $4,000 aCommission fees carned but not yet billed at December 31 are S Company paid $2.700 t0 cover maintenance service for six months, b s3.500.(Note: Debit e er month paearned. This additional ren is aP is additional rent is Receivable) Company's lease calls for rent of $900 per month payable on th of annual commi 5 Birch commi egual to I ollowing year (Note: Be sure to use the adjusted amount on lanuary 10 of the in computing the additional rent.) ow is 3-S4 Financlal Statements and Clasing Entries The adjusted trial balance shown below is s l contributions during the f Fne P3-8A sulting Service as of December 31. Byran Fine made no capita Adjusted Trial Debit Credit $ 2,700 3,270 5,060 1,500 6,400 Cash Accounts receivable... Prepaid insurance 1,080 845 7,000 3,00 Accounts payable Retained earnings 2,900 62,400 Salaries expense Supplies expense Insurance expense. Depreciation expense-Equipment 15,000 33,400 4,700 3,250 720 630 Totals

Explanation / Answer

a. Income statement Revenues: Service fees earned 62400 Total revenues and gains (A) 62400 Expenses and losses: Rent expenses 15000 Supplies expense 4700 Salaries expense 33400 Insurance expense 3250 Depreciation expense-Euipment 720 Interest expense 630 Total expenses (B) 57700 Net income (A)-(B) 4700 Total stockholder's equity Common Stock Retained earnings Total Balance,1st July,2018 3000 5205 8205 Paid dividends -2900 Net income 4700 Balance,31st December,2018 3000 7005 10005 Balance sheet Assets Amount ($) Liabilities Amount ($) Cash 2700 Accounts payable 845 Accounts receivable 3270 Supplies 5060 Prepaid insurance 1500 Total current liabilities 845 Total current assets 12530 Lomg term notes payable 7000 Total long-term liabilities 7000 Equipment 6400 Total liabilities 7845 Less: Accumulated depreciation 1080 5320 Total non-current assets 5320 Common stock 3000 Retained earnings 7005 Total stakeholder's equity 10005 Total assets 17850 Total liabilities & stakeholder's equity 17850 b. Closing entries: Date Account titles Debit Credit Dec 31. Retained earnings 60600 Rent expenses 15000 Supplies expense 4700 Salaries expense 33400 Insurance expense 3250 Depreciation expense-Euipment 720 Interest expense 630 Dividend 2900 (Closing of expense and dividend account) Dec 31. Service fees earned 62400 Retained earnings 62400 (Closing of revenue account)

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