The trial balance of LMNOP Company Inc. Contains the following accounts at Septe
ID: 2453377 • Letter: T
Question
The trial balance of LMNOP Company Inc. Contains the following accounts at September 30, 2015.
Account Title
Debit
Credit
Cash
29,200
Accounts Receivable
82,000
Inventory
105,000
Prepaid Rent
30,000
Supplies
8,600
Office Equipment
225,000
Accumulated Amortization- Office Equipment
86,000
Equipment
128,000
Accumulated Amortization- Equipment
39,000
Notes Payable
85,000
Interest Payable
Accounts Payable
78,500
Unearned Revenue
5,000
Salaries Payable
LMNOP, Capital
365,000
LMNOP, Withdrawal
2,000
Sales
926,000
Cost of Goods Sold
611,500
Salaries Expense
150,000
Advertising Expense
46,400
Telephone Expense
24,000
Repair Expense
32,100
Delivery Expense
46,700
Rent Expense
64,000
Interest Expense
Total
1,5824,500
1,584,500
The following information is made available to you the accountant:
Store supplies on had totalled $3,100.
Depreciation is $40,000 on the office equipment and $30,000 on the other equipment
Interest of $9,000 is accrued on notes payable at September 30, 2015.
September 30 is a Wednesday. Weekly salary is $7,500 and was last paid on Friday September 25. The work week is Monday-Friday.
The landlord required rent to be paid 6 months in advance as of June 1, 2015.
The unearned revenue was for work paid for in advance and to be completed by August 31. The deadline was met.
1) Required: Prepare any necessary adjusting entries.
1) Prepare and Adjusted Trial Balance:
Account Title
Debit
Credit
Cash
Accounts Receivable
Inventory
Prepaid Rent
Supplies
Office Equipment
Accumulated Amortization- Office Equipment
Equipment
Accumulated Amortization- Equipment
Notes Payable
Interest Payable
Accounts Payable
Salary Payable
Unearned Revenue
LMNOP, Capital
LMNOP, Withdrawal
Sales
Cost of Goods Sold
Salaries Expense
Advertising Expense
Telephone Expense
Supplies Expense
Depreciation Expense: Office
Depreciation Expense: Equipment
Repair Expense
Delivery Expense
Rent Expense
Interest Expense
Total
Prepare the Closing Entries
Account Title
Debit
Credit
Cash
29,200
Accounts Receivable
82,000
Inventory
105,000
Prepaid Rent
30,000
Supplies
8,600
Office Equipment
225,000
Accumulated Amortization- Office Equipment
86,000
Equipment
128,000
Accumulated Amortization- Equipment
39,000
Notes Payable
85,000
Interest Payable
Accounts Payable
78,500
Unearned Revenue
5,000
Salaries Payable
LMNOP, Capital
365,000
LMNOP, Withdrawal
2,000
Sales
926,000
Cost of Goods Sold
611,500
Salaries Expense
150,000
Advertising Expense
46,400
Telephone Expense
24,000
Repair Expense
32,100
Delivery Expense
46,700
Rent Expense
64,000
Interest Expense
Total
1,5824,500
1,584,500
Explanation / Answer
Date entry # Account Debit Credit Sep.30,2015 1 Supplies Expenses(8600-3100) 5500 Supplies 5500 2 Depreciation- Office Equipment 40000 Accumulated Depreciation- Office Equipment 40000 Depreciation- Other Equipment 30000 Accumulated Depreciation- Other Equipment 30000 3 Interest Expense 9000 Interest Accrued 9000 4 Salary expense(7500/5*3 4500 Salaries Payable 4500 5 Rent Expense(30000/6*4) 20000 Prepaid Rent 20000 6 Unearned Revenue 5000 Service Revenue 5000 Account Title Debit Credit Cash 29200 Accounts Receivable 82000 Inventory 105000 Prepaid Rent 10000 Supplies 5500 Office Equipment 225000 Accumulated Amortization- Office Equipment 126000 Equipment 128000 Accumulated Amortization- Equipment 69000 Notes Payable 85000 Interest Payable 9000 Accounts Payable 78500 Salary Payable 4500 Unearned Revenue LMNOP, Capital 365000 LMNOP, Withdrawal 2000 Sales 931000 Cost of Goods Sold 6,11,500 Salaries Expense 1,54,500 Advertising Expense 46,400 Telephone Expense 24,000 Supplies Expense 3100 Depreciation Expense: Office 40000 Depreciation Expense: Equipment 30000 Repair Expense 32100 Delivery Expense 46700 Rent Expense 84000 Interest Expense 9000 Total 1668000 1668000 Closing Entries Debit Credit Account Titles 931000 1 Sales 931000 Income Statement 2 Income Statement 1081300 Cost of Goods Sold 6,11,500 Salaries Expense 1,54,500 Advertising Expense 46,400 Telephone Expense 24,000 Supplies Expense 3100 Depreciation Expense: Office 40000 Depreciation Expense: Equipment 30000 Repair Expense 32100 Delivery Expense 46700 Rent Expense 84000 Interest Expense 9000 3 Retained Earnings 150300 Income Statement 150300 (Loss)
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