Gordon Corporation Trial Balance November 30, 2015 Account Debit Credit Cash 25,
ID: 2471996 • Letter: G
Question
Gordon Corporation
Trial Balance
November 30, 2015
Account Debit Credit
Cash 25,000
Accounts Receivable 12,000
Prepaid Insurance 6,000
Supplies 5,000
Land 100,000
Building 50,000
Accumulated Depreciation-Building 10,000
Vehicles 80,000
Accumulated Depreciation-Vehicles 20,000
Accounts Payable 8,000
Unearned Rent Revenue 3,600
Capital Stock 160,000
Retained Earnings 65,000
Dividends 6,500
Rental Revenue 63,500
Salaries and Wages Expense 28,000
Utilities Expense 15,000
Repairs Expense 2,600
The data needed to determine year-end adjustments are as follows:
a. Unexpired prepaid insurance at November 30, $2,400.
b. Supplies used during the month, $2,000.
c. Accrued salaries and wages, $3,500.
d. Rent unearned at end of the month totaled $1,800.
e. Depreciation of vehicles during the year, $1,500.
f. Depreciation of the building during the year, $2,500.
Instructions
1. Journalize the adjusting entries for transactions (a) through (f). 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 Journal Entries:
S.No.
Accounts Titles / Explanations
Debit
Credit
a.
Insurance Expense
$ 3,600
Prepaid Insurance
$ 3,600
(being insurance expired= 6000-2400 = 3600)
b.
Supplies Expense
$ 2,000
Supplies
$ 2,000
(being Supplies used)
c.
Salaries and Wages Expense
$ 3,500
Salaries and Wages Payable
$ 3,500
(being Salaries and Wages accrued)
d.
Unearned Rent Revenue
$ 1,800
Rental Revenue
$ 1,800
(being Rent Earned = 3600-1800 = 1800)
e.
Depreciation Expense -Vehicles
$ 1,500
Accumulated Depreciation-Vehicles
$ 1,500
(Being Depreciation expense recorded)
f.
Depreciation Expense -Building
$ 2,500
Accumulated Depreciation-Building
$ 2,500
(Being Depreciation expense recorded)
Gordon Corporation
November. 30, 2015
Unadjusted Trial Balance
Adjustments
Adjusted Trial Balance
Accounts
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 25,000
$ 25,000
Accounts Receivable
$ 12,000
$ 12,000
Prepaid Insurance
$ 6,000
$ 3,600
$ 2,400
Supplies
$ 5,000
$ 2,000
$ 3,000
Land
$ 100,000
$ 100,000
Building
$ 50,000
$ 50,000
Accumulated Depreciation-Building
$ 10,000
$ 2,500
$ 12,500
Vehicles
$ 80,000
$ 80,000
Accumulated Depreciation-Vehicles
$ 20,000
$ 1,500
$ 21,500
Accounts Payable
$ 8,000
$ 8,000
Unearned Rent Revenue
$ 3,600
$ 1,800
$ 1,800
Capital Stock
$ 160,000
$ 160,000
Retained Earnings
$ 65,000
$ 65,000
Dividends
$ 6,500
$ 6,500
Rental Revenue
$ 63,500
$ 1,800
$ 65,300
Salaries and Wages Expense
$ 28,000
$ 3,500
$ 31,500
Utilities Expense
$ 15,000
$ 15,000
Repairs Expense
$ 2,600
$ 2,600
Insurance Expense
$ 3,600
$ 3,600
Supplies Expense
$ 2,000
$ 2,000
Depreciation Expense -Vehicles
$ 1,500
$ 1,500
Depreciation Expense -Building
$ 2,500
$ 2,500
Salaries and Wages Payable
$ 3,500
$ 3,500
$ 330,100
$ 330,100
$14,900
$14,900
$ 337,600
$ 337,600
Adjusting Journal Entries:
S.No.
Accounts Titles / Explanations
Debit
Credit
a.
Insurance Expense
$ 3,600
Prepaid Insurance
$ 3,600
(being insurance expired= 6000-2400 = 3600)
b.
Supplies Expense
$ 2,000
Supplies
$ 2,000
(being Supplies used)
c.
Salaries and Wages Expense
$ 3,500
Salaries and Wages Payable
$ 3,500
(being Salaries and Wages accrued)
d.
Unearned Rent Revenue
$ 1,800
Rental Revenue
$ 1,800
(being Rent Earned = 3600-1800 = 1800)
e.
Depreciation Expense -Vehicles
$ 1,500
Accumulated Depreciation-Vehicles
$ 1,500
(Being Depreciation expense recorded)
f.
Depreciation Expense -Building
$ 2,500
Accumulated Depreciation-Building
$ 2,500
(Being Depreciation expense recorded)
Gordon Corporation
November. 30, 2015
Unadjusted Trial Balance
Adjustments
Adjusted Trial Balance
Accounts
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 25,000
$ 25,000
Accounts Receivable
$ 12,000
$ 12,000
Prepaid Insurance
$ 6,000
$ 3,600
$ 2,400
Supplies
$ 5,000
$ 2,000
$ 3,000
Land
$ 100,000
$ 100,000
Building
$ 50,000
$ 50,000
Accumulated Depreciation-Building
$ 10,000
$ 2,500
$ 12,500
Vehicles
$ 80,000
$ 80,000
Accumulated Depreciation-Vehicles
$ 20,000
$ 1,500
$ 21,500
Accounts Payable
$ 8,000
$ 8,000
Unearned Rent Revenue
$ 3,600
$ 1,800
$ 1,800
Capital Stock
$ 160,000
$ 160,000
Retained Earnings
$ 65,000
$ 65,000
Dividends
$ 6,500
$ 6,500
Rental Revenue
$ 63,500
$ 1,800
$ 65,300
Salaries and Wages Expense
$ 28,000
$ 3,500
$ 31,500
Utilities Expense
$ 15,000
$ 15,000
Repairs Expense
$ 2,600
$ 2,600
Insurance Expense
$ 3,600
$ 3,600
Supplies Expense
$ 2,000
$ 2,000
Depreciation Expense -Vehicles
$ 1,500
$ 1,500
Depreciation Expense -Building
$ 2,500
$ 2,500
Salaries and Wages Payable
$ 3,500
$ 3,500
$ 330,100
$ 330,100
$14,900
$14,900
$ 337,600
$ 337,600
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