E.C.Company Trial Balance Adjustments Debits CreditsDebits Credits Debit Credit
ID: 2335655 • Letter: E
Question
E.C.Company Trial Balance Adjustments Debits CreditsDebits Credits Debit Credit Adjusted Trial Balance Cash Accounts Receivable Supplies Equipment Accumluated Depreciation Accounts Payable Wage Payable Capital Stock Retained Earnings Revenues Utility Expense Wages Expense Supplies Expense Depreciation Expense 25 20 60 15 10 25 10 60 1. Ending inventory of supplies is $12. Make the adjusting journal entry to recod the supplies used 2. Depreciation of the equipment for the year is $S. Make the adjusting entry 3. Wages accrued at the end of the accounting period is $7. Make the adjusting entry. 4. Using the information in the adjusting entries as well as the information in the trial balance, calculate the net income for the period. 5. After adjusting entries what is the book value of the equipment? How old is the equipment? 6. Is the company in the first year of operations? Why? What is the ending balance in Retained Earnings? 7. What is the total amount of current assets?Explanation / Answer
Solution:
Adjustment Entries
Adjustment Entry
General Journal
Debit
Credit
1)
Supplies Expense (20 - 12)
$8
Supplies
$8
2)
Depreciation Expense
$5
Accumulated Depreciation
$5
3)
Wages Expense
$7
Wages Payable
$7
4) Calculation of Net Income
$$
Revenue (A)
$60
Expenses:
Utility Expense
$2
Wages Expense
$15
Supplies Expense
$8
Depreciation Expense
$5
Total Expenses (B)
$30
Net Income (A - B)
$30
Net Income = $30
5)
Book Value of the Equipment = Cost of Equipment $60 – Accumulated Depreciation (15 + 5)
= 60 – 20
= $40
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Pls ask separate question for remaining parts
Adjustment Entry
General Journal
Debit
Credit
1)
Supplies Expense (20 - 12)
$8
Supplies
$8
2)
Depreciation Expense
$5
Accumulated Depreciation
$5
3)
Wages Expense
$7
Wages Payable
$7
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