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

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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