Reference no: EM131824351
P4-7 Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share LO4-1, 4-2, 4-4
| Account Titles |
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 |
| Remaining expenses (not detailed; excludes income tax) |
33,360 |
|
| Income tax expense |
|
|
| |
|
|
| Totals |
$ 115,960 |
$ 115,960 |
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, December 31, 2014:
Data not yet recorded at December 31, 2014, included:
a. The supplies count on December 31, 2014, reflected $300 remaining supplies on hand to be used in 2015.
b. Insurance expired during 2014, $800.
c. Depreciation expense for 2014, $3,700.
d. Wages earned by employees not yet paid on December 31, 2014, $640.
e. Income tax expense, $5,540.
Required: 1 Record the 2014 adjusting entries.