Gordon Corporation is a rental car company owned and operated by Jeff Gordon. On

Question

Gordon Corporation is a rental car company owned and operated by Jeff Gordon. On April 30, 2017, the end of the current year, Gordon Corporation's accounting clerk prepared the unadjusted trial balance shown below Gordon Corporation Trial Balance April 30,2017 Account Debit 20,000 13,000 6,000 4,500 55,000 90,000 Credit Cash Accounts Receivable Prepaid Advertising Supplies Land Building Accumulated Depreciation-Building Vehicles Accumulated Depreciation-Vehicles Accounts Payable Unearned Rent Capital Stock Retained Earnings Dividends Rental Revenue Salaries and Wages Expense 12,000 180,000 24,000 6,000 3,900 220,000 75,000 8,000 84,500 30,000 13,000 2,100 3,600 200 Utilities Expense Advertising Expense Repairs Expense Miscellaneous Expense The data needed to determine year-end adjustments are as follows: a Depreciation of the building during the year, $4,000 b. Unexpired prepaid advertising at April 30, $2,200. c. Accrued salaries and wages, $4,000. d. Depreciation of vehicles during the year, $2,000 e. Rent unearned at end of the month totaled $1,500. f Supplies used during the month, $1,500 Instructions 1. Journalize the adjusting entries for transactions (a) through (D. This will require additional accounts not listed above 2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance

Explanation / Answer

Adjusting entry :

Adjusted trial balance :

No account and explanation debit credit a Depreciation expense 4000 Accumlated depreciation-Building 4000 (To record depreciation) b Advertising expense (6000-2200) 3800 Prepaid advertising 3800 (To record advertising expense) c Salary and wages expense 4000 Salary and wages payable 4000 (To record salary and wages expense) d Depreciation expense 2000 Accumlated depreciation-Vehicle 2000 (To record depreciation expense) e Unearned rent (3900-1500) 2400 Rent revenue 2400 (To record unearned rent) f Supplies expense 1500 Supplies 1500 (To record supplies expense)

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