Assignment
Following is the unadjusted trial balance of Pape Pens Corporation at the end of its first year of operations, December 31, 2019:
Acct. Balance
No. Account Debit Credit
101 Cash 3,300
110 Accounts receivable 4,000
161 Prepaid insurance 1,200
173 Unused supplies 500
184 Truck 8,000
194 Acc. dep. - truck -0-
210 Accounts payable 5,000
226 Salaries payable -0-
248 Unearned rent revenue 2,400
260 Income taxes payable -0-
320 Common stock 7,000
350 Dividends 1,000
410 Commissions earned 16,100
440 Rent earned -0-
610 Advertising expense 200
615 Commissions expense 1,000
624 Dep. expense - truck -0-
631 Insurance expense -0-
632 Interest expense 400
654 Rent expense 3,600
656 Salaries expense 7,000
668 Supplies expense -0-
669 Telephone expense 300
830 Income taxes expense -0-
30,500 30,500
The following additional information is available:
A. Prepaid insurance at December 31 amounts to $600.
B. A physical count indicates that $300 of supplies is still on hand at December 31.
C. The truck was purchased on July 1; it has an estimated useful life of 4 years.
D. One day of salaries for December 31 is unpaid; the unpaid amount of $200 will be included in the first Friday payment in January.
E. The balance in the Unearned Rent Revenue account represents six months rental of warehouse space, effective October 1.
F. A $100 bill for December telephone charges has not yet been recorded.
G. Income taxes expense for the year is $300. This amount will be paid in the next fiscal year.
Required:
A. Prepare all necessary adjusting entries at December 31, 2019, including general ledger account numbers. Descriptions are not needed.
B. Prepare an adjusted trial balance at December 31, 2019.
C. Prepare an income statement, statement of changes in equity, and balance sheet.
D. Prepare closing entries including general ledger account numbers and descriptions.
E. Prepare a post-closing trial balance.
Format your assignment according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.