The unadjusted trial balance of Up A Hill Co. at July 31, 2015, the end of the c
ID: 2471999 • Letter: T
Question
The unadjusted trial balance of Up A Hill Co. at July 31, 2015, the end of the current fiscal year, is shown below.
Up A Hill Co.
Trial Balance
July 31, 2015
Account Debit Credit
Cash 22,000
Accounts Receivable 10,000
Prepaid Advertising 45,000
Supplies 22,000
Land 85,000
Building 130,000
Accumulated Depreciation-Building 30,000
Accounts Payable 20,000
Unearned Rent Revenue 8,000
Capital Stock 120,000
Retained Earnings 80,000
Dividends 2,500
Fees Earned 110,200
Salaries and Wages Expense 24,000
Utilities Expense 12,600
Insurance Expense 7,800
Repairs Expense 4,200
Miscellaneous Expense 3,100 _ ______
Total 368,200 368,200
The data needed to determine year-end adjustments are as follows:
a. Depreciation of the building amounted to $3,500.
b. Fees earned but unbilled at year end amounted to $5,000.
c. Accrued salaries and wages totaled $2,000.
d. Unearned rent revenue July 31st equaled $1,800.
e. Unexpired prepaid advertising totaled $16,000.
f. Supplies used during the year equaled $9,000.
Instructions
1. Journalize and post the adjusting entries in the worksheet provided.
2. Prepare an adjusted trial balance.
3. Prepare an income statement, retained earnings statement and classified balance sheet on additional tabs in the worksheet provided.
4. Journalize and post the closing entries (do not add an income summary account).
5. Prepare a post-closing trial balance.
Explanation / Answer
Journal Entry a Depriciation A/C dr. 3,500 To Accumulated Depriciation on building 3,500 b Accured Fee A/C dr. 5,000 To Fees A/C 5,000 c Salaries and wages A/C dr. 2,000 To Accured Salaries and wages a/c 2,000 d Cash A/C dr. 6,200 To Unearned revenue 6,200 e Advertising A/C dr. 29,000 To prepaid Advertise A/C 29,000 f Consumption of supplies A/C dr. 9,000 To Supplies A/C 9,000
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