Question: The following six column table for Bullseye Ranges includes unadjusted trial balance as of December 31, 2005.
Bullseye Ranges
December 31, 2005;
Account Title Unadjusted Trial Balance Adjustments Adjusted Trial balance
|
|
Dr
|
Cr
|
Dr
|
Cr
|
Dr
|
Cr
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Cash
|
$13,000
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|
|
|
|
|
|
Accounts receivable
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0
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|
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|
|
|
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Supplies
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5.500
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|
|
|
|
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Equipment
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130,000
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|
|
|
|
|
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Accumulated depreciation-equipment
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25,000
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|
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Interest
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0
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|
|
|
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payable
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|
|
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|
|
|
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Salaries payable
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0
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|
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|
|
|
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Unearned member fees
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14,000
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|
|
|
|
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Notes Payable
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50,000
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|
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T. Allen, Capital
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58,250
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|
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T. Allen, Withdrawals
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20,000
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|
|
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Member fees earned
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53,000
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Depreciation expense-equipment
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0
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|
|
|
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Salaries expense
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28,000
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Interest expense
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3,750
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|
|
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Supplies expense
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0
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|
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Totals
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$200,250
|
$200,250
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[A] Finish the 6-column table by entering adjustments that reflect the following data:
(1) As of December 31, 2005, employees had received $900 of unpaid and unrecorded salaries. The next payday is January 4, at which time $1,600 of salaries will be paid.
(2) The price of supplies still available at December 31, 2005 is $2,700.
(3) The notes payable requires an interest payment to be made every three (3) months. The amount of unrecorded accrued interest at December 31, 2005, is $1,250. The next interest payment at an amount of $1,500 is due on January 15, 2006.
(4) Analysis of unearned member fees account shows $5,600 remaining unearned at December 31, 2005.
(5) In addition to the member fees included in the revenue account balance the firm has earned another $9,100 in unrecorded fees that will be collected on January 31, 2006. The firm is also expected to collect 8,000 also on that same day for new fees earned in January 2006.
(6) Depreciation cost for the year is 12,500.
[B] Make journal entries for the adjustments entered in the six-column table for part 1.
[C] Make journal entries to reverse the effects of the adjusting entries that involve accruals.
[D] Make journal entries to record the cash payments and cash collections described for January.