Starbooks Corporation provides an online bookstore for electronic bo accounts an

Question

Starbooks Corporation provides an online bookstore for electronic bo accounts and amounts reported In Its accounting records. The accou balances Assume the year ended on September 30, 2015 Accounts Payable Accounts Recelvable Accumulated Depreciation Equipment Cash Common Stock Depreclation Expense Equipment Income Tax Expense Interest Revenue Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent Rent Expense Retained Earnings Salarlies and Wages Expense Service Revenue Supplies Supplies Expense Travel Expense Unearned Revenue $ 609 309 909 309 209 309 3,209 309 109 209 509 109 409 1,509 2,209 6,227 509 209 2,609 209 valtue: 3.07 points Required 1-a. Prepare an adjusted trial balance at September 30, 2015

Explanation / Answer

Starbooks Corporation

1. a Adjusted Trial Balance

At September, 2015

1- b

No, the retained earnings balance of $1,509 would not be reoprted on the balance sheet as of September 30, 2015. This amount will be used as beginning retained earnings balance, which then would be added to the net profit to calculate the amount of Retained Earnings to be reported on the Balance Sheet.

2. Journal Entries

i) Dr Service Revenue $6,227
Dr Interest Revenue $109
Cr Income Summary $6,336

ii) Dr Income Summary $ 6,054
Cr Rent Expense $409

Cr Income Tax Expense $309
Cr Salaries and Wages Expense $2,209

Cr Supplies Expenses $209

Cr Travel Expense $2,609

Cr Depreciation Expense $309

iii ) Dr Income Summary $282
Cr Retained Earnings $282

Account Name Debit Credit Cash 309 Accounts Receivable 309 Supplies 509 Prepaid Rent 109 Equipment 3,209 Accumulated Depreciation - Equipment 909 Accounts Payable 609 Unearned Revenue 209 Note Payable (Short - term) 509 Note Payable (Long - term) 209 Common Stock 209 Retained Earnings 1,509 Service Revenue 6,227 Interest Revenue 109 Travel Expense 2,609 Salaries and Wages Expense 2,209 Rent Expense 409 Depreciation Expense 309 Supplies Expenses 209 Income Tax Expense 309 Totals 10,499 10,499

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