Problem 3-8 Flint Advertising was founded by Murali Vedula in January 2015. Pres
ID: 2609522 • Letter: P
Question
Problem 3-8 Flint Advertising was founded by Murali Vedula in January 2015. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2017 FLINT ADVERTISING TRIAL BALANCE DECEMBER 31, 2017 Unadjusted Dr Adjusted Dr Cr. Cr. Cash Accounts Receivable Supplies Prepaid Insurance Equipment $12,670 16,540 9,890 4,410 64,700 $12,670 19,986 6,723 2,706 64,700 $27,100 7,700 1,850 Notes Payable Accounts Payable Interest Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings $32,290 7,700 1,850 539 3,741 788 19,940 12,910 5,460 19,940 12,910 10,600 10,600 59,710 64,875 Service Revenue Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense 10,468 1,704 539 5,190 3,167 6,180 9,680 6,180 $134,670 $134,670 $144,633 $144,633Explanation / Answer
A. Journal Entry.
Date
Particulars
Dr. Amount (in$)
Cr. Amount (in$)
1
Accounts Receivable
To Service Revenue
(Being accrued service revenue earned)
Note 1
3446
3,446
2
Supplies Expense
TO Supplies
(Being supplies used)
3,167
3,167
3
Insurance Expense
TO Prepaid Insurance
(Being insurance expired)
1,704
1,704
4
Depreciation
TO Accumulated Depreciation
5,190
5,190
5
Interest Expense
TO Interest Payable
(Being interest on note)
539
539
6
Unearned Service Revenue
To Service Revenue
(Being service earned)
1,719
1,719
7
Salaries & Wages Expense
TO Salaries & Wages Payable
788
788
B. Income Statement
Income Statement
Particulars
Amount
Income
Service Revenue
64,875
Expenses
Salaries & Wages
10,468
Supplies
3,167
Insurance
1,704
Depreciation
5,190
Rent
6,180
Interest
539
Total Expenses
27,248
Net Income
37,627
C. Retained Earnings
Retained Earnings
Particulars
Amount
Opening Balance of Retained Earnings
12,910
Add: Income earned during the year
32,627
Less: Dividends Paid
10,600
Closing Balance
34,937
Date
Particulars
Dr. Amount (in$)
Cr. Amount (in$)
1
Accounts Receivable
To Service Revenue
(Being accrued service revenue earned)
Note 1
3446
3,446
2
Supplies Expense
TO Supplies
(Being supplies used)
3,167
3,167
3
Insurance Expense
TO Prepaid Insurance
(Being insurance expired)
1,704
1,704
4
Depreciation
TO Accumulated Depreciation
5,190
5,190
5
Interest Expense
TO Interest Payable
(Being interest on note)
539
539
6
Unearned Service Revenue
To Service Revenue
(Being service earned)
1,719
1,719
7
Salaries & Wages Expense
TO Salaries & Wages Payable
788
788
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