Prepare an adjusted trial balance, adjusted trial balance, income statement, ret
ID: 2492530 • Letter: P
Question
Prepare an adjusted trial balance, adjusted trial balance, income statement, retained earnings statement, and balance sheet.
I have already journalized all the entries and posted them to the ledger. Here are my posts:
Revenue account is "Decorating Fees"
Jan 5:Cash (DR) 60,000
common stock (CR) 60,000
Cash (DR)
prepaid insurance (cr) 6000
Jan 6:
Deposit (DR) 2000
rent expense(DR) 2000(last month)
prepaid rent (DR) 2000
Cash (Cr) 6000
jan 7:
Supplies (DR) 1600
Cash (CR) 1600
Advertising expense (DR) 7000
CASH (Cr) 7000
Jan 10:
Cash () 10000
Decorating fees (cr) 10,000
Jan 12
Accounts Receivable (DR) 6000
Decorating Fees (CR) 6000
jan 20:
cash (DR) 8000
Decorating fees (cr)8000
Jan 25:
Accounts Rec (DR): 12000
Decorating Fees (CR) 12000
jan 30:
Utilities Expense (DR) 190
Cash (CR) 190
Telephone Expense(DR) 300
Cash (CR) 300
Postage Expense(DR) 200
Cash (CR) 200
Automobile Expense (DR) 450
Cash (CR) 450
Jan 30:
Salaries Expense CR: 5600
Cash DR: 5600
Adjusting Entries:
Insurance Expense (DR) 500
Prepaid Insurance (CR) 500
Supplies Expense (DR) 600
Supplies (CR) 600
Explanation / Answer
Jan 5 Entry should read as: Prepaid Insurance 6000 Cash 6000 Adjusted Trial Balance Debit Credit Accounts Rec 18000 Cash 50660 Deposit 2000 prepaid insurance 5500 prepaid rent 2000 Supplies 1000 common stock 60000 Decorating fees 36000 Insurance Expense 500 Postage Expense 200 Advertising expense 7000 Automobile Expense 450 rent expense 2000 Salaries Expense 5600 Supplies Expense 600 Telephone Expense 300 Utilities Expense 190 Total 96000 96000 Income Statement Decorating fees 36000 Less: Operating expenses: Insurance Expense 500 Postage Expense 200 Advertising expense 7000 Automobile Expense 450 rent expense 2000 Salaries Expense 5600 Supplies Expense 600 Telephone Expense 300 Utilities Expense 190 16840 Net Income trf.to ret.Earnings 19160 Balance Sheet Assets Current Assets Accounts Rec 18000 Cash 50660 Deposit 2000 prepaid insurance 5500 prepaid rent 2000 Supplies 1000 Total assets 79160 Liabilities & Equity Equity common stock 60000 Retained Earnings 19160 Total Liabilities & Equity 79160