Reference no: EM131611577

Exercise 1: The account balances appearing on the trial balance were taken from the general ledger of ABC Company at January 31. Additional information for January which has not yet been recorded in the accounts is as follows:

a. Depreciation on equipment for January was $1,200.

b. The amount of insurance that expired in January was $700.

c. Rent owed on ABC Company for January was $1,800 but will not be paid until February.

d. A physical count of supplies indicates $1,750 on hand at January 31^st.

e. Salaries owed on ABC Company for January was $2,700 but will not be paid until February.

f.  A utility bill for $150 has not been recorded and will not be paid until next month.

g. $2,800 of unearned service revenue is recognized for services performed during the month.

h. Invoices representing $1,200 of services performed during the month have not been recorded as of June 30.

Accounts	Trial Balance
	Debit	Credit
Cash	12,500
Supplies	2,750
Prepaid insurance	5,500
Equipment	60,000
Accumulated Depreciation		11,250
Accounts payable		6,000
Notes payable		10,000
Owner capital		48,250
Owners' drawings	6,000
Copy revenue		12,250
Utilities expense	1,000
Total	87,750	87,750

Required:

(a) Prepare the necessary adjusting entries for January.

(b) Prepare the adjusted trial balance for the month ended January 31.

Exercise 2: The adjusted trial balance of   YWZ Company on December 31, 2017 includes the following accounts:

Accumulated Depreciation, $8,000;

Depreciation Expense, $2,500;

Note Payable $6,500;

Interest Expense $250;

Utilities Expense, $350;

Rent Expense, $820;

Service Revenue, $22,600;

Salaries Expense, $6,000;

Supplies, $300;

Supplies Expense, $1,800;

Wages Payable, $700.

Required: Prepare an income statement for the month of December.

Exercise 3: The trial balance columns of the worksheet for Lamar Company at June 30, 2017,are as follows. 

LAMAR COMPANY Worksheet for the Month Ended June 30, 2017

	Trial Balance
Account Titles	Debit	Credit
Cash	2,760
Accounts Receivable	3,100
Supplies	1,320
Accounts Payable		$2,080
Unearned Service Revenue		360
Owner's Capital		2,480
Service Revenue		3,100
Salaries and Wages Expense	700
Miscellaneous Expense	140
Total	8,020	8,020

Other data:

1. A physical count reveals $450 of supplies on hand.

2. $220 of the unearned revenue is still unearned at month-end.

3. Accrued salaries are $350.

Required: Enter the trial balance on a worksheet and complete the worksheet.