Instructions Prepare the income and owner\'s equity statements for the year and
ID: 2333252 • Letter: I
Question
Instructions Prepare the income and owner's equity statements for the year and the balance sheet at August 31. Record transactions on accrual basis; convert revenue to cash receipts. l 7720 1,000 Salaries and Wages Expense Service Revenue 1,200 1,200 7/15 7/31 7/31 2,000 1,150 Instructions After analyzing the accounts, journalize (a) the July transactions and (b) the adjusting entries that were made on July 31. (Hint: July transactions were for cash.) 3 The trial balances before and after adjustment for Turnquist Company at the end E3-1 of its fiscal year are presented below. Prepar analys LO 2, TURNQUIST COMPANY Trial Balance August 31, 2017 Before Adjustment After Adjustment Dr. Cr. Dr. Cr Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Unearned Rent Revenue Owner's Capital Service Revenue Rent Revenue Salaries and Wages Expense Supplies Expense Rent Expense Insurance Expense Depreciation Expense $10,400 8,800 2,300 4,000 14,000 $10,400 11,400 900 2,500 14,000 S 3,600 1,500 15,600 34,000 11,000 4,500 5,800 1,100 400 15,600 36,600 12,100 17,000 18,100 1,400 15,000 1,500 900 15,000 $71,500 $71,500 $76,100 $76,100 Instructions Prepare the adjusting entries that were made.Explanation / Answer
Turnquist company Income statement For the year Revenues ($) Service Revenue 36,600.00 Rent Revenue 12,100.00 A 48,700.00 Expenses Salaries and Wages Expense 18,100.00 Supplies Expense 1,400.00 Rent Expense 15,000.00 Insurance Expense 1,500.00 Depreciation Expense 900.00 B 36,900.00 Net Income (A-B) 11,800.00 Record Entries Dr. Amount($) Cr. Amount($) 1 cash 11400 Accounts Receivable 11400 2 Cash 36600 Service Revenue 36600 3 Cash 12100 Rent Revenue 12100 4 Cash 400 Unearned Rent Revenue 400