Question 1 (20 points) The following is the Bravo Unlimited unadjusted Trail Bal
ID: 2599491 • Letter: Q
Question
Question 1 (20 points)
The following is the Bravo Unlimited unadjusted Trail Balance.
Bravo Unlimited
Unadjusted Trial Balance
December 31, 2016
Account Title
Debit
Credit
Cash
$88,450
Accounts Receivable
231,860
Supplies
6,255
Prepaid Rent
11,000
Equipment
395,285
Accumulated Depreciation
$224,260
Accounts Payable
72,555
Wages Payable
0
Capital Stock
220,000
Retained Earnings
111,145
Service Revenue
893,105
Interest Income
1,500
Rent Expense
60,500
Wages Expense
527,260
Supplies Expense
42,520
Utilities Expense
8,595
Depreciation Expense
144,000
Interest Expense
6,840
________
Totals
$1,522,565
$1,522,565
Adjusting Items:
1. A physical inventory shows supplies on hand of $2,000 at year end.
2. The prepaid rent covers December 2016 & January 2017 rents.
3. December depreciation on equipment is $12,000 per month.
4. At year end Wages of $10,300 were earned but unpaid.
Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment. If no entry is required then write "No Entry Required."
Bravo Unlimited
Unadjusted Trial Balance
December 31, 2016
Account Title
Debit
Credit
Cash
$88,450
Accounts Receivable
231,860
Supplies
6,255
Prepaid Rent
11,000
Equipment
395,285
Accumulated Depreciation
$224,260
Accounts Payable
72,555
Wages Payable
0
Capital Stock
220,000
Retained Earnings
111,145
Service Revenue
893,105
Interest Income
1,500
Rent Expense
60,500
Wages Expense
527,260
Supplies Expense
42,520
Utilities Expense
8,595
Depreciation Expense
144,000
Interest Expense
6,840
________
Totals
$1,522,565
$1,522,565
Explanation / Answer
Adjusting entry :
Date accounts & explanation debit credit Supplies expenses a/c 4255 Supplies a/c 4255 (To record supplies adjusted) Rent expenses a/c 5500 Prepaid rent a/c 5500 (To record prepaid rent adjusted) Depreciation expenses a/c 12000 Accumlated depreciation a/c 12000 (To record depreciation) Wages expenses a/c 10300 wages payable a/c 10300 (To record accured expenses payable)Related Questions
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