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ID: 2562528 • Letter: A
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assignment-tak evg.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do Problem 4-30 Adjusting Entries and Closing Entries The unadjusted and adjusted trial balances of Wang, Inc. are shown as follows: Wang, Inc Trial Balance December 31 Unadjusted Trial Balance Adjusted Trial Balance Debit Credit Debit Credit S 8,000 Accounts Receivable 12,250 Prepaid Insurance 6,400 Supplies Buildings Land Accumulated $ 8,000 16,250 5,600 1,200 250,000 2,400 250,000 75,000 S 25,000 s 50,000 Salaries Payable Unearned Revenue Utilities Payable Notes Payable Common Stock Retained Earnings Service Revenue 9,500 15,450 75,000 150,000 22,100 75,500 7,000 20,950 75,000 150,000 82,000 Expense 8,500 8,500 25,000 Insurance Expense Salaries Expense 8,00 Supplies Expense Utilities Expense 10,000 1,200 5,500 2,000 2,000 372,550 $372,550 $409,050 $409,050 TotalsExplanation / Answer
1) ADJUSTING ENTIRES: Accounts receivable 4000 Service revenue 4000 (To record revenue) Insurance expense 800 Prepaid insurance 800 (To record insuranc expired) Supplies expense 1200 Supplies 1200 (To record supplies expense) Depreciation expense 25000 Accumulaed depreciation 25000 (To record depreciation) Salaries expense 2000 Salaries payable 2000 (To record salaries payable) Unearned revenue 2500 Service revenue 2500 (To record revenue earned) Utilities expense 5500 Utilities payable 5500 (To record utilities accrued) 2) CLOSING ENTRIES: Service revenue 82000 Income summary 82000 (To close service revenue) Income summary 51000 Advertising expense 8500 Depreciation expense 25000 Insurance expense 800 Salaries expense 10000 Supplies expense 1200 Utilities expense 5500 (To close expense accounts) Income summary 31000 Retained earnings 31000 (To close net income to retained earnings) Retained earnings 2000 Dividends 2000 (To close dividends to retained earnings) 3) INCOME STATEMENT Service revenue 82000 Expenses: Advertising expense 8500 Depreciation expense 25000 Insurance expense 800 Salaries expense 10000 Supplies expense 1200 Utilities expense 5500 Total expenses 51000 Net income 31000 4) STATEMENT OF RETAINED EARNINGS Beginning balance 22100 Add: Net Income 31000 Less: Dividends 2000 Ending balance 51100 5) BALANCE SHEET Assets Current Assets: Cash 8000 Accounts receivable 16250 Prepaid insurance 5600 Supplies 1200 Total current assets 31050 Property, Plant and Equipment: Land 75000 Buildings 250000 Less: Accumulated depreciation 50000 Buildings (Net) 200000 Total property, plant and equipment 275000 Total assets 306050 Liabilities & Stock holders' Equity Current liabilities: Salaries payable 2000 Unearned revenue 7000 Utilities payable 20950 Total current liabilities 29950 Notes payable 75000 Total liabilities 104950 Stockholders' equity: Common stock 150000 Retained earnings 51100 Total stockholders' equity 201100 Total liabilities & Stockholders' Equity 306050
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