Student Full English Name:Student ID: 2. Adjusting entries -Part I Kinokawa Cons
ID: 2438032 • Letter: S
Question
Student Full English Name:Student ID: 2. Adjusting entries -Part I Kinokawa Consultants Business Trial Balance on December 31, 2014, follows. This is a proprietorship's trial balance. K.Wah, capital and withdrawal are two accounts under equity section. Kinokawa Consultants Trial Balance December 31, 2014 Cash Debit Credit 12,786 24,840 Accounts Receivable Office Supplies... Prepaid Rent Office Equipment. Accumulated Depreciation-Office Equipment Accounts Payable Notes Payable 1,400 6,700 S 1,600 1,820 10,000 2,860 29,387 ?.wah. Capital. K.Wah, Withdrawal/Drawings Service Revenue Salaries Expense Utilities Expense.... Rent Expense 33,000 8,500 1,750 S104.167 S104.167 The following information is also available a. Ending inventory of office supplies, $86 b. Prepaid rent expired, $700 c. Depreciation of office equipment for the period, $600 d. Interest accrued on the notes payable, $600 c. Salaries accrued at the end of the period, $200 f. Service revenue still uneamed at the end of the period, $1,410 g. Service revenue earned but not billed, S600 Required: L Open T account for the accounts in the trial balance plus the following: Interest Payable; Salaries Payable; Office Supplies Expense: Depreciation Expense-Office Equipment: and Interest Expense. Enter all the account balances 2. Prepare the adjusting journal entries and post them to the T-accounts. 3. Prepare an adjusted trail balance. 4. Which financial statements (i.e., balance sheet, income statement, statement of owner's equity and statement of cash flows) do each of the above adjustments affect? What financial statement is not affected by the adjustments?Explanation / Answer
Kinokawa Consultants Adjusting Entries 31-Dec Office Supplies Expenses($991-$86) $ 905.00 To Computer Supplies $ 905.00 (Being amount of Office Supplies) 31-Dec Rent $ 700.00 To Prepaid Rent $ 700.00 (Being amount of Rent Expenses) 31-Dec Depreciation-Office Equipment $ 600.00 To Accumulated Depreciation-Office Equipment $ 600.00 (Being amount of Depreciation Expense) 31-Dec Interest Expenses $ 600.00 To Interest Payable $ 600.00 (Being amount of Interest on Note Payable) 31-Dec Salary Expenses $ 200.00 To Salary Payable $ 200.00 (Being amount of accrued Salary) 21-Dec Unearned Service Revenue($2860-$1410) $ 1,450.00 To Service Revenue $ 1,450.00 (Being amount of Service Revenue) 31-Dec Accounts Receivable $ 600.00 To Service Revenue $ 600.00 (Being amount of Service Revenue earned but not billed) Accounts Receivable Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance $ 24,840.00 31-Dec Service Revenue $ 600.00 $ 25,440.00 Prepaid Rent Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance $ 1,400.00 31-Dec Rent $ 700.00 700.00 Rent Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance $ 7,700.00 31-Dec Prepaid Rent $ 700.00 8,400.00 Salary Expenses Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance $ 33,000.00 31-Dec Salary Payable $ 200.00 $ 33,200.00 Salary Payable Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance $ - 31-Dec Salary $ 200.00 $ 200.00 Depreciation Expense-Office Equipment Date Particular Amt (DR) Amount (Cr) Balance 31-Dec Accumulated Depreciation $ 600.00 $ 600.00 Accumulated Depreciation Expense-Office Equipment Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Bal $ 1,600.00 31-Dec Depreciation-Computer Equipment $ 600.00 $ 2,200.00 Unearned Service Revenue Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Balance $ 2,860.00 31-Dec Service Revenue $ 1,450.00 $ 1,410.00 Office Supplies Expenses Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance $ - 31-Dec Office Supplies Supplies $ 905.00 $ 905.00 Office Supplies Date Particular Amt (DR) Balance 1-Dec Opening Balance $ 991.00 31-Dec Office Supplies Expenes $ 905.00 $ 86.00 Interest Expense Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance $ - 31-Dec Interest Payable $ 600.00 $ 600.00 Interest Payable Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance 31-Dec Interest Expense $ 600.00 $ 600.00 Service Revenue Date Particular Amt (DR) Balance 1-Dec Opening Balance $ 58,500.00 31-Dec Unearned Service Revenue $ 1,450.00 $ 59,950.00 31-Dec Accounts Receivable $ 600.00 $ 60,550.00 Kinokawa Consultants Adjusted Trial Balance For the Three Months Ended December 31st,2014 Account Title & Explaination Amt (Dr) Amt (Cr) Cash $ 12,786.00 Accounts Receivable $ 25,440.00 Prepaid Rent $ 700.00 Office Supplies $ 86.00 Office Equipment $ 6,700.00 Accumulated Depreciation-Office Equipment $ 2,200.00 Interest Payable $ 600.00 Salary Payable $ 200.00 Accounts Payable $ 1,820.00 Note Payable $ 10,000.00 Unearned Service Revenue $ 1,410.00 K. Wab Capital $ 29,387.00 K.Wab Withdrawals $ 15,000.00 Service Revenue $ 60,550.00 Supplies Expenses $ 905.00 Depreciation Expense-Office Equipment $ 600.00 Salaries Expenses $ 33,200.00 Interest Expense $ 600.00 Rent Expenses $ 8,400.00 Utilities Expenses $ 1,750.00 Total $ 1,06,167.00 $ 1,06,167.00 Kinokawa Consultants Income Statement - For the months ended December 31st,2014 Service Revenue=(A) $ 60,550.00 Expenses Salary Expenses $ 33,200.00 Supplies Expenses $ 905.00 Rent Expenses $ 8,400.00 Utilties Expenses $ 1,750.00 Interest Expenses $ 600.00 Depreciation-Office Equipment $ 600.00 Total Expenses=(B) $ 45,455.00 Net Income(A)-(B) $ 15,095.00 Kinokawa Consultants Statement of Owner's Equity For the months ended December 31st,2014 Beginning Retained Earnings 0 Add: Net Income $ 15,095.00 Ending Retained Earnings $ 15,095.00 Kinokawa Consultants Balance Sheet December 31st,2014 Assets Cash $ 12,786.00 Accounts Receivable $ 25,440.00 Office Supplies $ 86.00 Prepaid Rent $ 700.00 Office Equipment $ 6,700.00 Accumulated Depreciation-Office Equipment $ -2,200.00 Total Assets $ 43,512.00 Liabilities & Stockholder's equity Liabilities Accounts Payable $ 1,820.00 Salary Payable $ 200.00 Interest Payable $ 600.00 Unearned Service Revenue $ 1,410.00 Note Payable $ 10,000.00 Total Liabilities $ 14,030.00 Stockholder's Equity Common Stock $ 29,387.00 Less: Withdrawl $ -15,000.00 Retained Earnings $ 15,095.00 Total Equity $ 29,482.00 Total Liabilities & Stockholder's Equity $ 43,512.00