0 1) Journalize the adjusting entries on December 31 2) Using the unadjusted trial balance, open the T Account/ ledger for all the accounts with unadjusted balances. Post the 42 adjusting entries to the ledger accounts. Balance off each account. 44 3) Prepare the adjusted trail balance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A.
D.
30
31 b) At the end of the month, Guthrie had $500 of office remaining
32
33 c) Depreciation on the building is $1,200
34
d) Guthrie pays its employees weekly on Friday. It employees earn $1800 for a five day work week. December 31 falls on a
35 Friday
36
e) On November 20, Guthrie contracted to perform services for a client receiving $3,600 in advance. Guthrie recorded this
37 receipt of cash as Unearned Revenue. As of December 31, Guthrie has $1,600 still unearned.
38
39 Requirement
40 1) Journalize the adjusting entries on December 31
41
2) Using the unadjusted trial balance, open the T Account/ ledger for all the accounts with unadjusted balances. Post the
42 adjusting entries to the ledger accounts. Balance off each account.
44 3) Prepare the adjusted trail balance
46 4) Prepare the income statement
48 5) Prepare the statement of equity
50. 6) Prenare the balance sheet
Transcribed Image Text:A. D. 30 31 b) At the end of the month, Guthrie had $500 of office remaining 32 33 c) Depreciation on the building is $1,200 34 d) Guthrie pays its employees weekly on Friday. It employees earn $1800 for a five day work week. December 31 falls on a 35 Friday 36 e) On November 20, Guthrie contracted to perform services for a client receiving $3,600 in advance. Guthrie recorded this 37 receipt of cash as Unearned Revenue. As of December 31, Guthrie has $1,600 still unearned. 38 39 Requirement 40 1) Journalize the adjusting entries on December 31 41 2) Using the unadjusted trial balance, open the T Account/ ledger for all the accounts with unadjusted balances. Post the 42 adjusting entries to the ledger accounts. Balance off each account. 44 3) Prepare the adjusted trail balance 46 4) Prepare the income statement 48 5) Prepare the statement of equity 50. 6) Prenare the balance sheet
D.
Debit
Credit
6 Account Title
7 Cash
8Accounts Receivable
9 Prepaid Expense
10 Office Supplies
11 Building
12 Accumulated Depreciation Buildings
13 Accounts Payable
14 Salaries Payable
15 Unearned Revenue
16 Guthrie, Capital
17 Guthrie, Withdrawals
18 Service Revenue
19 Salaries Expense
20 Insurance Expense
21 Depreciation Expense
22 Advertising Expense
23 Supplies
24 Total
13,500
15,100
4,600
800
530,000
260,000
1,710
3,600
288,950
2,340
15,500
2,800
620
569,760
569,760
25
26
27 Adjustment data at December 31 follow:
28
29 a) As of December 31, Guthrie had $700 of prepaid insurance remaining
Transcribed Image Text:D. Debit Credit 6 Account Title 7 Cash 8Accounts Receivable 9 Prepaid Expense 10 Office Supplies 11 Building 12 Accumulated Depreciation Buildings 13 Accounts Payable 14 Salaries Payable 15 Unearned Revenue 16 Guthrie, Capital 17 Guthrie, Withdrawals 18 Service Revenue 19 Salaries Expense 20 Insurance Expense 21 Depreciation Expense 22 Advertising Expense 23 Supplies 24 Total 13,500 15,100 4,600 800 530,000 260,000 1,710 3,600 288,950 2,340 15,500 2,800 620 569,760 569,760 25 26 27 Adjustment data at December 31 follow: 28 29 a) As of December 31, Guthrie had $700 of prepaid insurance remaining
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