Reference no: EM131100060
Journal entries and trial balance
On October 1, 2012, Faith Schultz established Heavenly Realty, which completed the fol-lowing transactions during the month:
a. Faith Schultz transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $20,000.
b. Paid rent on office and equipment for the month, $3,750.
c. Purchased supplies on account, $1,100.
d. Paid creditor on account, $400.
e. Earned sales commissions, receiving cash, $16,750.
f. Paid automobile expenses (including rental charge) for month, $1,000, and miscel¬laneous expenses, $700.
g. Paid office salaries, $2,150.
h. Determined that the cost of supplies used was $600.
i. Paid dividends, $1,000.
Instructions
1. Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Capital Stock; Dividends; Sales Commissions; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscella-neous Expense. Explanations may be omitted.
2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance.
3. Prepare an unadjusted trial balance as of October 31, 2012.
4. Determine the following:
a. Amount of total revenue recorded in the ledger.
b. Amount of total expenses recorded in the ledger.
c. Amount of net income for October.
5. Determine the increase or decrease in retained earnings for October.
Adjusting entries and adjusted trial balances
Galloway Company is a small editorial services company owned and operated by Fran Briggs. On July 31, 2012, the end of the current year, Galloway Company's accounting clerk prepared the unadjusted trial balance shown on the next page.
The data needed to determine year-end adjustments are as follows:
a. Unexpired insurance at July 31, $4,800.
b. Supplies on hand at July 31, $600.
c. Depreciation of building for the year, $3,100.
d. Depreciation of equipment for the year, $2,700.
e. Rent unearned at July 31, $1,750.
f. Accrued salaries and wages at July 31, $3,000.
g. Fee earned but unbilled on July 31, $10,750.
Galloway Company
Unadjusted Trial Balance
July 31, 2012
|
Debit Balances |
Credit Balances |
| Cash |
7,500 |
|
| Accounts Recievable |
38,400 |
|
| Prepaid Insurance |
7,200 |
|
| Supplies |
1,980 |
|
| Land |
112,500 |
|
| Building |
200,250 |
|
| Accumulated depreciation - Building |
|
137,550 |
| Equipment |
135,300 |
|
| Accumulated depreciation - Equipment |
|
97,950 |
| Accounts Payable |
|
12,150 |
| Unearned Rent |
|
6,750 |
| Capital Stock |
|
80,000 |
| Retained Earning |
|
141,000 |
| Dividends |
15,000 |
|
| Fees Earned |
|
324,600 |
| Salaries and wages Expense |
193,370 |
|
| Utilities Expense |
42,375 |
|
| Advertising Expense |
22,800 |
|
| Repairs Expense |
17,250 |
|
| Miscellaneous Expense |
6,075 |
|
|
800,000 |
800,000 |
Instructions
1. Journalize the adjusting entries using the additional accounts: Salaries and Wages payable; Rent Revenue; Insurance Expense; Depreciation Expense-Building; Depreciation Expense - Equipment; and Supplies Expense.
2. Detemine the balances of the accounts affected by the adjusting entries, and prepare Thaditisted trial balance.
Adjusting entries and errors
At the end of June, the first month of operations, the following selected data were taken from the financial statements of Beth Cato, an attorney:
Net income for June $80,000
Total assets at june 30 500,000
Total liabilites at june 30 200,000
Total stockholder's equity at june 30 200,000
In preparing the financial statements, adjustments for the following data were overlooked:
a. Supplies used during June, $1,500.
b. Unbilled fees earned at June 30, $18,000.
c. Depreciation of equipment for June, $3,000.
d. Accrued wages at June 30, $1,200.
Instruction
1. Jornalize the entries to record the omitted adjustments.
2. Determine the correct amount of net income for June and the total assets, liabilities, and stockholders' equity at June 30. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table to the following. Adjustment (a) is presented as an example.
Adjusting entries and adjusted trial balances
Galloway Company is a small editorial services company owned and operated by Fran
Briggs. On July 31, 2012, the end of the current year, Galloway Company's accounting clerk prepared the unadjusted trial balance shown on the next page.
The data needed to determine year-end adjustments are as follows:
a. Unexpired insurance at July 31, $4,800.
b. Supplies on hand at July 31, $600.
c. Depreciation of building for the year, $3,100.
d. Depreciation of equipment for the year, $2,700.
e. Rerit unearned at July 31, $1,750.
f. Accrued salaries and wages at July 31, $3,000.
g. Fees earned but unbilled on July 31, $10,750.
Attachment:- Assignment.rar