Required Information P4-7 (Static) Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share LO4-1, 4-2, 4-4 [The following information applies to the questions displayed below.] Tunstall, Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Cash Accounts receivable Supplies Prepaid insurance Service trucks Accumulated depreciation. Other assets Accounts payable Wages payable Income taxes payable. Tunstall, Incorporated Unadjusted Trial Balance At December 31 Note payable (3 years; 10% interest due each September 30) Common stock (5,000 shares outstanding) Additional paid-in capital Retained earnings Service revenue Wages expense Remaining expenses (not detailed; excludes income tax) Income tax expense Totals Debit 42,000 11,600 900 800 19,000 8,300 16,200 17,160 115,960 Credit 9,200 3,000 17,000 400 19,000 6,000 61,360 115,960 Data not yet recorded at December 31 Included: a. The supplies count on December 31 reflected $300 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $800. c. Depreciation expense for the current year, $3,700. d. Wages earned by employees not yet paid on December 31, $640. e. Three months of Interest expense (for the note payable borrowed on October 1 of the current year) was incurred in the current year. f. Income tax expense, $5,540.
Required Information P4-7 (Static) Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share LO4-1, 4-2, 4-4 [The following information applies to the questions displayed below.] Tunstall, Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Cash Accounts receivable Supplies Prepaid insurance Service trucks Accumulated depreciation. Other assets Accounts payable Wages payable Income taxes payable. Tunstall, Incorporated Unadjusted Trial Balance At December 31 Note payable (3 years; 10% interest due each September 30) Common stock (5,000 shares outstanding) Additional paid-in capital Retained earnings Service revenue Wages expense Remaining expenses (not detailed; excludes income tax) Income tax expense Totals Debit 42,000 11,600 900 800 19,000 8,300 16,200 17,160 115,960 Credit 9,200 3,000 17,000 400 19,000 6,000 61,360 115,960 Data not yet recorded at December 31 Included: a. The supplies count on December 31 reflected $300 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $800. c. Depreciation expense for the current year, $3,700. d. Wages earned by employees not yet paid on December 31, $640. e. Three months of Interest expense (for the note payable borrowed on October 1 of the current year) was incurred in the current year. f. Income tax expense, $5,540.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement
Section: Chapter Questions
Problem 20P
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Question
![Required information
P4-7 (Static) Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income
Statement Including Earnings per Share LO4-1, 4-2, 4-4
[The following information applies to the questions displayed below.]
Tunstall, Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an
outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on
December 31:
Cash
Accounts receivable
Supplies
Prepaid insurance
Service trucks
Accumulated depreciation
Tunstall, Incorporated
Unadjusted Trial Balance
At December 31
Other assets
Accounts payable
Wages payable
Income taxes payable
Note payable (3 years; 10% interest due each September 30)
Common stock (5,000 shares outstanding)
Additional paid-in capital
Retained earnings
Service revenue
Wages expense
Remaining expenses (not detailed; excludes income tax)
Income tax expense
Totals
Debit
42,000
11,600
900
800
19,000
8,300
16,200
17,160
115,960
Credit
9,200
3,000
17,000
400
19,000
6,000
61,360
115,960
Data not yet recorded at December 31 Included:
a. The supplies count on December 31 reflected $300 in remaining supplies on hand to be used in the next year.
b. Insurance expired during the current year, $800.
c. Depreciation expense for the current year, $3,700.
d. Wages earned by employees not yet paid on December 31, $640.
e. Three months of Interest expense (for the note payable borrowed on October 1 of the current year) was incurred in
the current year.
f. Income tax expense, $5,540.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8f05c49-8089-4092-b265-7f390ec44542%2Fc6a9edc1-cd7d-4443-8745-0458a895cde5%2F2z54be_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
P4-7 (Static) Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income
Statement Including Earnings per Share LO4-1, 4-2, 4-4
[The following information applies to the questions displayed below.]
Tunstall, Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an
outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on
December 31:
Cash
Accounts receivable
Supplies
Prepaid insurance
Service trucks
Accumulated depreciation
Tunstall, Incorporated
Unadjusted Trial Balance
At December 31
Other assets
Accounts payable
Wages payable
Income taxes payable
Note payable (3 years; 10% interest due each September 30)
Common stock (5,000 shares outstanding)
Additional paid-in capital
Retained earnings
Service revenue
Wages expense
Remaining expenses (not detailed; excludes income tax)
Income tax expense
Totals
Debit
42,000
11,600
900
800
19,000
8,300
16,200
17,160
115,960
Credit
9,200
3,000
17,000
400
19,000
6,000
61,360
115,960
Data not yet recorded at December 31 Included:
a. The supplies count on December 31 reflected $300 in remaining supplies on hand to be used in the next year.
b. Insurance expired during the current year, $800.
c. Depreciation expense for the current year, $3,700.
d. Wages earned by employees not yet paid on December 31, $640.
e. Three months of Interest expense (for the note payable borrowed on October 1 of the current year) was incurred in
the current year.
f. Income tax expense, $5,540.
Transcribed Image Text:P4-7 Part 3
3. Record the closing entry.
Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.
View transaction list
Journal entry worksheet
<
1
Record the closing entry.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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