Question - The trail balance relates to the year 2016. It was prepared at 31/12/2016 but the accountant did not include the following.
1. Deprecation for the year. Years of usefulness of equipment is 10 years.
2. Accrued salary at 31, December for Monday, Tuesday, Wednesday and Thursday. The five days weekly payroll is 1500.
3. On the first of October, the company collected from a customer for advertisement $4000, the service will be provided from October through January.
|
Account
|
Debit
|
Credit
|
|
Cash
|
120200
|
|
|
Accounts receivable
|
15600
|
|
|
Supplies
|
3300
|
|
|
Prepaid rent
|
1050
|
|
|
Equipment
|
20000
|
|
|
Accumulated depreciation
|
|
2000
|
|
Accounts payable
|
|
10450
|
|
Salary payable
|
|
5600
|
|
Unearned revenue
|
|
4000
|
|
Share Capital
|
|
120000
|
|
Revenue
|
|
30000
|
|
Retained eantinp,s
|
|
9350
|
|
Withdrawals
|
950
|
|
|
Depreciation
|
0
|
|
|
Salary expense
|
12000
|
|
|
Rent Expense
|
8300
|
|
|
Total
|
181400
|
181400
|
Required -
1. Prepare the required adjusting entries.
2. Prepare the adjusted trail balance.
3. Prepare the Income statement and the balance sheet.