The following unadjusted trial balance is for Power and Demolition Company as of
ID: 2601942 • Letter: T
Question
The following unadjusted trial balance is for Power and Demolition Company as of year-end for the April 30, 2015 fiscal year. The April 30, 2014 credit balance of the owner's equity account is $46,900, and the owner invested $40,000 cash in the company during 2015.
NO.
Account Title
Debit
Credit
101
Cash
$7,000
126
Supplies
$16,000
128
Pre-paid insurance
$12,600
167
Equipment
$200,000
168
Accumulated depreciation – equipment
$14,000
201
Accounts payable
$6,800
251
Long-term notes payable
$30,000
301
Brooks, equity
$86,900
302
Brooks, withdrawals
$12,000
401
Demolition fees earned
$187,000
623
Wage expense
$41,400
633
Interest expense
$3,300
640
Rent expense
$13,200
683
Property tax expense
$9,700
684
Repairs expense
$4,700
690
Utilities expense
$4,800
TOTALS
$324,700
$324,700
a) Journalize the following adjusting entries as of fiscal year-end April 30, 2015.
b) Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance.
The supplies available at the end of fiscal 2015 year are at a cost of $7,900.
The cost of expired insurance for the fiscal year is $10,600.
Annual depreciation on equipment is $7,000; no other depreciation adjustment was made in 2015.
The April utilities expense of $800 is not included in the adjusted trial balance, because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded..
The company's employees have earned $2000 of accrued wages in the fiscal year.
The rent expense not yet paid or recorded in the fiscal year is $3000.
Additional property taxes of $550 have been assessed for the fiscal year, but have not yet been paid or recorded in the accounts.
The $300 accrued interest for April has not yet been paid and reported.
NO.
Account Title
Debit
Credit
101
Cash
$7,000
126
Supplies
$16,000
128
Pre-paid insurance
$12,600
167
Equipment
$200,000
168
Accumulated depreciation – equipment
$14,000
201
Accounts payable
$6,800
251
Long-term notes payable
$30,000
301
Brooks, equity
$86,900
302
Brooks, withdrawals
$12,000
401
Demolition fees earned
$187,000
623
Wage expense
$41,400
633
Interest expense
$3,300
640
Rent expense
$13,200
683
Property tax expense
$9,700
684
Repairs expense
$4,700
690
Utilities expense
$4,800
TOTALS
$324,700
$324,700
Explanation / Answer
2)
Date Account Debit credit april 30,2015 1 supplies expense 8100 supplies 8100 [supplies used 16000-7900] 2 Insurance expense 10600 Prepaid insurance 10600 3 Depreciation expense 7000 accumulated depreciation-equipment 7000 4 utilities expense 800 accounts payable 800 5 wages expense 2000 wages payable 2000 6 Rent expense 3000 Rent payable 3000 7 property tax expense 550 property tax payable 550Related Questions
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