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The unadjusted and adjusted trial balances for American Leaf Company on October

ID: 2412626 • Letter: T

Question

The unadjusted and adjusted trial balances for American Leaf Company on October 31, 2016, follow:

American Leaf Company

UNADJUSTED TRIAL BALANCE

October 31, 2016

1

Cash

16.00

2

Accounts Receivable

38.00

3

Supplies

12.00

4

Prepaid Insurance

20.00

5

Land

26.00

6

Equipment

40.00

7

Accumulated Depreciation-Equipment

8.00

8

Accounts Payable

26.00

9

Wages Payable

10

Sloane Kissel, Capital

92.00

11

Sloane Kissel, Drawing

8.00

12

Fees Earned

74.00

13

Wages Expense

24.00

14

Rent Expense

8.00

15

Insurance Expense

16

Utilities Expense

4.00

17

Depreciation Expense

18

Supplies Expense

19

Miscellaneous Expense

4.00

20

Totals

200.00

200.00

Journalize the five entries that adjusted the accounts at October 31, 2016. None of the accounts were affected by more than one adjusting entry. Refer to the Chart of Accounts for exact wording of account titles.

Adjusted Trial Balance

American Leaf Company

ADJUSTED TRIAL BALANCE

October 31, 2016

1

Cash

16.00

2

Accounts Receivable

44.00

3

Supplies

10.00

4

Prepaid Insurance

8.00

5

Land

26.00

6

Equipment

40.00

7

Accumulated Depreciation-Equipment

12.00

8

Accounts Payable

26.00

9

Wages Payable

2.00

10

Sloane Kissel, Capital

92.00

11

Sloane Kissel, Drawing

8.00

12

Fees Earned

80.00

13

Wages Expense

26.00

14

Rent Expense

8.00

15

Insurance Expense

12.00

16

Utilities Expense

4.00

17

Depreciation Expense

4.00

18

Supplies Expense

2.00

19

Miscellaneous Expense

4.00

20

Totals

212.00

212.00

Chart of Accounts

ACCOUNT TITLE DEBIT CREDIT

1

Cash

16.00

2

Accounts Receivable

38.00

3

Supplies

12.00

4

Prepaid Insurance

20.00

5

Land

26.00

6

Equipment

40.00

7

Accumulated Depreciation-Equipment

8.00

8

Accounts Payable

26.00

9

Wages Payable

10

Sloane Kissel, Capital

92.00

11

Sloane Kissel, Drawing

8.00

12

Fees Earned

74.00

13

Wages Expense

24.00

14

Rent Expense

8.00

15

Insurance Expense

16

Utilities Expense

4.00

17

Depreciation Expense

18

Supplies Expense

19

Miscellaneous Expense

4.00

20

Totals

200.00

200.00

Explanation / Answer

Solution :

Adjusting Journal Entries - American Leaf Company Date Particulars Debit Credit 31-Oct-16 Accounts Receivables Dr $6.00         To Fees Earned $6.00 (To record revenue for service performed) 31-Oct-16 Supplies Expense Dr $2.00         To Supplies $2.00 (To record supplies Expense) 31-Oct-16 Insurance Expense Dr $12.00         To Prepaid Insurance $12.00 (To record insurance expense) 31-Oct-16 Depreciation Expense Dr $4.00         To Accumulated Depreciation - Equipment $4.00 (To record depreciation expense) 31-Oct-16 Wages Expense Dr $2.00         To Wages Payable $2.00 (To record wages expense)