Prepare the adjusting entries that must have been made

Assignment Help Financial Accounting
Reference no: EM131560891

Problem

The following unadjusted and adjusted trial balances are available for Interior Designs, Inc., as of and for the fiscal year ended December 31, 20X7.

  Unadjusted Trial Balance
Adjusted Trial Balance 


Debit

Credit

Debit

Credit

Cash ........................................................... $20,000

 

$20,000

 

Accounts receivable ............................

11,000

 

19,500

 

Prepaid insurance....................................

4,400

 

4,000

 

Office supplies ..............................

7,000

 

6,000

 

Prepaid rent ..............................................

6,000

 

5,500

 

Equipment................................................ 120,000

 

120,000

 

Accumulated depreciation ..................


$22,000

 

$23,000

Interest payable........................................


500

 

600

Accounts payable ...................................


13,500

 

13,500

Income tax payable .....................


2,000

 

3,000

Salaries payable........................................


0

 

3,000

Unearned professional fees revenue .


15,000

 

14,000

Notes payable (due 20X9) ..........


20,000

 

20,000

Common stock ........................................


40,000

 

40,000

Retained earnings....................................


50,200

 

50,200

Dividends ...................................................

9,000

 

9,000

 

Professional fees revenue......................

 

86,000

 

95,500

Interest expense ...........................

1,100


1,200

 

Salaries expense .........................

25,000


28,000

 

Insurance expense ........................

4,400


4,800

 

Rent expense...........................................

11,000


11,500

 

Depreciation expense ................

11,000


12,000

 

Income tax expense.................................

5,600


6,600

 

Supplies expense ..........................

6,000


7,000

 

Utilities expense ......................

7.700


7.700

 

Totals ...................................................... $249 200

$249 200

$282.821

$2.62 800

a) Prepare the adjusting entries that must have been made.

b) Prepare the income statement and the statement of retained earnings for the fiscal year ended December 31, 20X7, as well as a statement of financial position as of December 31, 20X7.

c) Prepare closing entries.

d) Prepare a retained earnings general ledger '1" account showing the January 1, 20X7, balance, the effect of the closing entries, and the December 31, 20X7, balance.

Reference no: EM131560891

Questions Cloud

Assuming straight-line depreciation to zero : Given the following information and assuming straight-line depreciation to zero, what is the NPV of this project? Initial investment = $120,000.
Find the average cost function : COST OF PRODUCING DVDS The total weekly cost in dollars incurred by Herald Media Corp. in producing x DVDs is given by the total cost function.
What is the operating cash flow for the project in year two : The tax rate is 30 percent and the required return on the project is 12 percent. What is the operating cash flow for the project in year 2?
The various functions of hr professionals : Explain how the various functions of HR professionals enable them to serve the role of strategic partners in achieving organizational goals.
Prepare the adjusting entries that must have been made : Prepare the adjusting entries that must have been made - Prepare the income statement and the statement of retained earnings for the fiscal year ended December
Debit to utilities revenue and debit to cash : credit to Accounts Payable. credit to Utilities Expense. debit to Utilities Revenue. debit to Cash.
A bondholder should put puttable bond when : A bondholder should put a puttable bond when.
Explore a work of literature within a specific culture : Examine a work of multicultural literature we read and write a paper showing how that cultural context has shaped the work.
Credit balances-accounts payable and service revenue : Which of the following groups of accounts contains only those that normally have credit balances? Accounts Payable, Service Revenue, and Retained Earnings Cash,

Reviews

Write a Review

Financial Accounting Questions & Answers

  Explain the effect each cost flow method

Explain the effect each cost flow (FIFO, LIFO) method would have on profit in rising and falling prices, and why..

  How much interest will be paid annually on these bonds

Ariel, Inc., issued $30 million face amount of 9% bonds when market interest rates were 9.30% for bonds of similar risk and other characteristics. How much interest will be paid annually on these bonds?

  When the stock-option plan was adopted

Berg Company adopted a stock-option plan on November 30, 2013, that provided that 77,200 shares of $6 par value stock be designated as available for the granting of options to officers of the corporation at a price of $10 a share. The market price wa..

  Growth stage best describes this pattern of cash flows

A company has the following cash flows: Which growth stage best describes this pattern of cash flows?

  Compute the largest depreciation deduction possible

LB Corporation purchased a business car in June 2015 for $42,000. The car weighs 4,000 pounds and will be used 100 percent of the time in the business. Compute the largest depreciation deduction possible in 2015. Compute the largest depreciation dedu..

  Decrease in proportion to the additional room sales

On the twentieth day of the month, room sales at the Motor Lodge Motel exceeded its breakeven point for the month. Revenue generated by room sales during the remaining days of the month will: decrease in proportion to the additional room sales.

  What is the availability float and what is payment float

Your bank account currently shows a balance of $940. You now deposit $100 into the account and write a check for $40. What is the ledger balance in your account? What is the availability float? What is payment float?

  Prepare the consolidation journal entries and consolidation

Prepare the consolidation journal entries and consolidation worksheet for the above entities.Adapted from Leo et al. (2009) Company accounting (8thed) John Wiley and Sons, Milton,Queensland.

  Determine the total contribution margin

For the most recent year, Triad Company had fixed costs of $290,000 and variable costs of 80% of total sales revenue, earned $87,750 of net income after taxes, and had an income tax rate of 35%. Determine the before-tax income. Determine the total co..

  Cost of goods sold under absorption costing

If the company produces 400 units and sells 1,200 units next year, what would be its cost of goods sold under absorption costing?

  A if the project is undertaken at t 0 the company will

a. if the project is undertaken at t 0 the company will need to increase its inventories by 50000 and its accounts

  Consider that at the starting of the current year a company

consider that at the starting of the current year a company has a net gain-aoci of 60700000. at the same time assume

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd