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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. Income tax expense, $5,540. Required: 1. Record the adjusting entries. 2. Prepare an income statement and a classified balance sheet that include the effects of the preceding five transactions. 3. Record the closing entry.

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. Income tax expense, $5,540. Required: 1. Record the adjusting entries. 2. Prepare an income statement and a classified balance sheet that include the effects of the preceding five transactions. 3. Record the closing entry.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter12: Financial Statements, Closing Entries, And Reversing Entries
Section: Chapter Questions
Problem 4PB: The following accounts appear in the ledger of Sheldon Company on January 31, the end of this fiscal...
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Tunstall, Inc., 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:

TUNSTALL, INC. Unadjusted Trial Balance for the Year Ended December 31 Debit Credit Cash 42,000 Accounts receivable 11,600 Supplies 900 Prepaid insurance 800 Service trucks 19,000 Accumulated depreciation 9,200 Other assets 8,300 Accounts payable 3,000 Wages payable Income taxes payable Note payable (3 years; 10% interest due each December 31) 17,000 Common stock (5,000 shares outstanding) 400 Additional paid-in capital 19,000 Retained earnings 6,000 Service revenue 61,360 Wages expense 16,200 Remaining expenses (not detailed; excludes income tax) 17,160 Income tax expense Totals 115,960 115,960
Transcribed Image Text:TUNSTALL, INC. Unadjusted Trial Balance for the Year Ended December 31 Debit Credit Cash 42,000 Accounts receivable 11,600 Supplies 900 Prepaid insurance 800 Service trucks 19,000 Accumulated depreciation 9,200 Other assets 8,300 Accounts payable 3,000 Wages payable Income taxes payable Note payable (3 years; 10% interest due each December 31) 17,000 Common stock (5,000 shares outstanding) 400 Additional paid-in capital 19,000 Retained earnings 6,000 Service revenue 61,360 Wages expense 16,200 Remaining expenses (not detailed; excludes income tax) 17,160 Income tax expense Totals 115,960 115,960
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. Income tax expense, $5,540. Required: 1. Record the adjusting entries. 2. Prepare an income statement and a classified balance sheet that include the effects of the preceding five transactions. 3. Record the closing entry.
Transcribed Image Text: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. Income tax expense, $5,540. Required: 1. Record the adjusting entries. 2. Prepare an income statement and a classified balance sheet that include the effects of the preceding five transactions. 3. Record the closing entry.
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