Requirements: 1. Journalize and Post the adjusting entries using the T-accounts
ID: 2542369 • Letter: R
Question
Requirements:
1. Journalize and Post the adjusting entries using the T-accounts
2. Prepare an adjusted trial balance as of December 31, 2018
November 3: Purchased Canoes for $4,800 on account.
December 2: Purchased Canoes signing a notes payable for $7,200.
At December 31, the business gathers the following information for the adjusting entries:
a. Office supplies on hand, $165
b. Rent of one month has been used (1000.00).
c. Determine the depreciation on the building using straight-line depreciation. Assume the useful life of the building is five years and the residual value is $5,000.
d. $400 of unearned revenue has now been earned.
e. The employee who has been working the rental booth has earned $1,250 in wages that will be paid January 15, 2013.
f. Canyon Canoes has earned $1,850 of canoe rental revenue that has not been recorded or received.
g. Determine the depreciation on the canoes purchased on November 3 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0.
h. Determine the depreciation on the canoes purchased on December 2 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0.
i. Interest expense accrued on the notes payable, $50.
Unadjusted Trial Balance
Account Debit Credit Cash $12,125 Accounts Recievable $5,750 Office Supplies $1,250 Prepaid Rent $3,000 Land $85,000 Building $35,000 Canoe $12,000 Accounts Payable $3,050 Utilities Payable $325 Telephone Payable $295 Unearned Revenue $750 Notes Payable $7,200 Wilson, Capital $136,000 Wilson, Withdrawl $450 Canoe Rental Revenue $12,400 Rent Expense $1,200 Utilities Expense $475 Wages Expense $3,300 Telephone Expense $470 TOTALS: $160,020 $160,020Explanation / Answer
Journal Entry Date Name of Account & Description Debit Credit Nov-03 Canoe A/C 4800 Accounts Payable 4800 (Canoe purchased on account) Dec-02 Canoe A/C 7200 Notes Payable 7200 (Canoe purchased signing a note payable) Dec-31 Supply Expenses A/c 1085 Office Supplies A/c 1085 (Being supply expenses incurred) Dec-31 Rent Expenses 1000 Prepaid Rent A/c 1000 (Being one month rent used) Dec-31 Depreciation Expenses A/c 6000 Accumulated Dep. A/c 6000 (Being Depreciation charged building (35000-5000)/5) Dec-31 Unearned Revenue A/c 400 Canoe Rental Revenue A/c 400 (Being revenue earned) Dec-31 Wages Expenses A/c 1250 Wages Payable A/c 1250 (Being supply expenses incurred) Dec-31 Depreciation Expenses A/c 1200 Accumulated Dep. A/c 1200 (Being Depreciation charged (4800/4) Dec-31 Depreciation Expenses A/c 1800 Accumulated Dep. A/c 1800 (Being Depreciation charged 7200/4) Dec-31 Accounts Receivables A/c 1850 Canoe Rental Revenue A/c 1850 (Being income recorded) Dec-31 Interest Expenses A/c 50 Interest Payable A/c 50 (Being interest expenses incurred) Trial Balance At December 31 , 201x Particulars Unadjusted Adjustments Adjusted Account Debit Credit Debit Credit Debit Credit Cash 12125 12125 Accounts Recievable 5750 1850 7600 Office Supplies 1250 1085 165 Prepaid Rent 3000 1000 2000 Land 85000 85000 Building 35000 35000 Accu. Depreciation-Building 0 0 6000 6000 Canoe 12000 4800+7200 24000 Accu. Depreciation-Canoe 1200+1800 3000 Accounts Payable 3050 4800 7850 Utilities Payable 325 0 325 Telephone Payable 295 0 295 Wages Payable 1250 1250 Interest Payable 50 50 Unearned Revenue 750 400 350 Notes Payable 7200 7200 14400 Wilson, Capital 136000 136000 Wilson, Withdrawl 450 450 Canoe Rental Revenue 12400 400+1850 14650 Rent Expense 1200 1000 2200 Utilities Expense 475 475 Wages Expense 3300 1250 4550 Supply Expenses 0 0 1085 1085 Depreciation Expenses 6000+1200+1800 9000 Interest Expenses 50 50 Telephone Expense 470 470 TOTALS: 160020 160020 24150 24150 184170 184170
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