Instructions Prepare a correct income statement for July 2014. E4-13 This is a p
ID: 2418041 • Letter: I
Question
Instructions Prepare a correct income statement for July 2014.
E4-13 This is a partial adjusted trial balance of Barone Company. BARONE COMPANYAdjusted Trial BalanceJanuary 31, 2014 Debit Credit Supplies $ 700Prepaid Insurance 1,560Salaries and Wages Payable $1,060Unearned Service Revenue 750Supplies Expense 950Insurance Expense 520Salaries and Wages Expense 1,800Service Revenue 4,000 Instructions
Answer these questions, assuming the year begins January 1.
(a) If the amount in Supplies Expense is the January 31 adjusting entry, and $300 of sup-plies was purchased in January, what was the balance in Supplies on January 1?
(b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for 1 year, what was the total premium and when was the policy purchased?
(c) If $2,500 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2013?
(d) If $1,800 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2013?
E4-14 A partial adjusted trial balance for Barone Company is given in E4-13.
Instructions Prepare the closing entries at January 31, 2014.
E4-15 Selected accounts of Castle Company are shown here. Supplies Expense July 31 750 Salaries and Wages Payable July 31 1,000 Salaries and Wages Expense July 15 1,000 31 1,000 Service Revenue July 14 3,800 31 900 31 500 Supplies July 1 Bal. 1,100 July 31 750 10 200 Accounts Receivable July 31 500 Unearned Service Revenue July 31 900 July 1 Bal. 1,500 20 600 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.)
E4-16 The trial balances shown below are before and after adjustment for Bere Com-pany at the end of its fiscal year.
BERE COMPANYTrial BalanceAugust 31, 2014
Before After Adjustment Adjustment
Dr. Cr. Dr. Cr. Cash $10,900 $10,900
Accounts Receivable 8,800 9,400
Supplies 2,500 500
Prepaid Insurance 4,000 2,500
Equipment 16,000 16,000
Accumulated Depreciation—Equipment $ 3,600 $ 4,800
Accounts Payable 5,800 5,800
Salaries and Wages Payable 0 1,100
Unearned Rent Revenue 1,800 800
Common Stock 10,000 10,000
Retained Earnings 5,500 5,500
Dividends 2,800 2,800
Service Revenue 34,000 34,600
Rent Revenue 12,100 13,100
Salaries and Wages Expense 17,000 18,100
Supplies Expense 0 2,000
Rent Expense 10,800 10,800
Insurance Expense 0 1,500
Depreciation Expense 0 1,200 $72,800 $72,800 $75,700 $75,700
Instructions Prepare the adjusting entries that were made E4-17 The adjusted trial balance for Bere Company is given in E4-16.
Instructions Prepare the income and retained earnings statement for the year and the classified balance sheet at August 31.
E4-18 The adjusted trial balance for Bere Company is given in E4-16.
Instructions Prepare the closing entries for the temporary at August 31
Explanation / Answer
Journal entries
E4-13
(a) x +300 - 950 = 700
so 1350 supplies at jan 1
(b) 520*12 = 6240 prepaid insurance
(c) x- 2500 = 1060 so salries and wages payable 3560
(d) x-1800 = 750 so balance = 2550
Adjsuting entries
E4-14
E4-16
Income statment
Service revenue $34,600
Rent revenue 13,100
total revenue 47,700
less:Expenses
Salaries and wages expense 18,100
Supplies expense 2,000
Rent expense 10,800
Insurance expense 1,500
Depreciatione expense 1,200 $33,600
Net income $14,100
Balance sheet
Cash 10,900 Accounts apayble 5,800
A/c receivable 9,400 Salaries & wages payable 1,100
Supplies 500 unearned rent revenue 800
Prepaid insurance 2,500
Common stock 10,000
Retained earnings 16,500
Equipemtn 16,000
less:dep 4,800 $11,200
total Assets $34,500 total $34,500
Retained earnings
opening $5,500
Add:Net income 14,100
less:Dividend (2,800)
Closing balance $16,800
E4-18 Closing entries
(a) x +300 - 950 = 700
so 1350 supplies at jan 1
(b) 520*12 = 6240 prepaid insurance
(c) x- 2500 = 1060 so salries and wages payable 3560
(d) x-1800 = 750 so balance = 2550