Following are the 12/31/17 unadjusted and adjusted trial balances for HW Co. HW
ID: 2607266 • Letter: F
Question
Following are the 12/31/17 unadjusted and adjusted trial balances for HW Co. HW Co. Unadjusted and Adjusted Trial Balances December 31, 2017 Unadjusted Adjusted DR CR DR CR Cash $16,000 $16,000 Accounts Receivable 44,000 51,800 Allowance for Doubtful Accounts 125 1,680 Supplies 17,500 6,800 Prepaid Insurance 6,700 5,100 Equipment 185,000 185,000 Accumulated Depreciation—Equipment $58,000 $69,700 Accounts Payable 11,000 11,000 Interest Payable 300 Salaries and Wages Payable - 2,600 Notes Payable 10,000 10,000 Unearned Service Revenue 12,000 9,200 Common Stock 20,000 20,000 Retained Earnings 65,575 65,575 Service Revenue 117,200 127,800 Salaries and Wages Expense 16,000 18,600 Insurance Expense 1,600 Interest Expense 700 1,000 Depreciation Expense 11,700 Bad Debt Expense 1,555 Supplies Expense 10,700 Rent Expense 8,000 8,000 $293,900 $293,900 $317,855 $317,855 Instructions (a) Journalize the annual adjusting entries that were made. (Omit explanations.) The first entry has been prepared for you. Dec Debit Credit 31 Accounts Receivable 7,800 Service Revenue 7,800 31 31 31 31 31 31 31 - (b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2017, and an unclassified balance sheet at December 31. All expenses and liabilities should be placed in descending size order. HW Co. Income Statement For the Year Ended December 31, 2017 Revenues Expenses HW Co. Statement of Retained Earnings For the Year Ended December 31, 2017 HW Co. Balance Sheet December 31, 2017 Assets Liabilities and Stockholders’ Equity Following are the 12/31/17 unadjusted and adjusted trial balances for HW Co. HW Co. Unadjusted and Adjusted Trial Balances December 31, 2017 Unadjusted Adjusted DR CR DR CR Cash $16,000 $16,000 Accounts Receivable 44,000 51,800 Allowance for Doubtful Accounts 125 1,680 Supplies 17,500 6,800 Prepaid Insurance 6,700 5,100 Equipment 185,000 185,000 Accumulated Depreciation—Equipment $58,000 $69,700 Accounts Payable 11,000 11,000 Interest Payable 300 Salaries and Wages Payable - 2,600 Notes Payable 10,000 10,000 Unearned Service Revenue 12,000 9,200 Common Stock 20,000 20,000 Retained Earnings 65,575 65,575 Service Revenue 117,200 127,800 Salaries and Wages Expense 16,000 18,600 Insurance Expense 1,600 Interest Expense 700 1,000 Depreciation Expense 11,700 Bad Debt Expense 1,555 Supplies Expense 10,700 Rent Expense 8,000 8,000 $293,900 $293,900 $317,855 $317,855 Instructions (a) Journalize the annual adjusting entries that were made. (Omit explanations.) The first entry has been prepared for you. Dec Debit Credit 31 Accounts Receivable 7,800 Service Revenue 7,800 31 31 31 31 31 31 31 - (b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2017, and an unclassified balance sheet at December 31. All expenses and liabilities should be placed in descending size order. HW Co. Income Statement For the Year Ended December 31, 2017 Revenues Expenses HW Co. Statement of Retained Earnings For the Year Ended December 31, 2017 HW Co. Balance Sheet December 31, 2017 Assets Liabilities and Stockholders’ EquityExplanation / Answer
Jounral:
Income statement:
Account Debit Credit Supplies expense 10,700 Supplies 10,700 Insurance expense 1,600 Prepaid insurance 1,600 Depreciation Expense 11,700 Accumulated Depreciation—Equipment 11,700 Salaries and Wages Expense 2,600 Salaries and Wages Payable 2,600 Interest Expense 300 Interest Payable 300 Bad Debt Expense 1,555 Allowance for Doubtful Accounts 1,555 Accounts Receivable 7,800 Unearned service revenue 2,800 Service revenue 10,600