Reference no: EM13845255

Panda Inn, Inc.

Panda Inn, Inc. is in a crunch as financial statement presentation is only one week away. Before FS presentation can take place, Panda must complete its Adjusted Trial Balance. To do this, Unadjusted TB information is needed from which adjustments may be added or subtracted. Completing the adjusted trial balance is a matter of adding or subtracting rows across after all adjustments are made.

Instructions: Please compute and input Panda's adjusting journal entries into the Adjustments columns, noting Dr. & Cr. alignment. Then complete its Adjusted TB as noted above. Lastly, compute Totals Row for all columns. Month-end AJEs must be computed and inputted based on Dr's & Cr's and the following information:

(a) Panda counted supplies at month-end and determined $760 worth were remaining.
(b) Prepaid Insurance balance decreased to $2,200.
(c) Unearned Revenue decreased to $240.
(d) Revenue earned but unrecorded amounts to $500 based on services provided.
(e) Payroll information reveals that Panda owes its employees $250.
(f) Book value on fixed assets fell from $1,800 to $1,750.

	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
Account Title	Debit	Credit	Debit	Credit	Debit	Credit
Cash	2,065
Accounts Receivable	2,220
Supplies	2,000
Prepaid Insurance	2.4
Land	20,000
Office Equipment	1,800
Accumulated Depr.
Accounts Payable		900
Wages Payable		360
Unearned Rent		25,000
Common  Stock	4000
Dividends		16340
Fees Earned
Rent Revenue
Wages Expense	4275
Rent Expense	1600
Depreciation Expense
Utilities Expense	985
Supplies Expense	800
Insurance Expense
Miscellaneous Exp.	455
Totals Row	42600	42600

Please do not write below this line. For use by Instructor Mares Bonus points given