Assignment: Preparing Adjusting Entries in a Worksheet
Following is the unadjusted trial balance of Baltimore Rentals Corporation at the end of its first year of operations, December 31, 20X5:
|
Account
|
Unadjusted Trial balance
|
|
|
Debit
|
Credit
|
|
Cash
|
3,300
|
|
|
Accounts receivable
|
4,000
|
|
|
Supplies
|
500
|
|
|
Truck
|
8,000
|
|
|
Acc. Dep. - Truck
|
|
0
|
|
Accounts payable
|
|
5,000
|
|
Unearned rent revenue
|
|
2,400
|
|
Income taxes payable
|
|
0
|
|
Capital Stock
|
|
7,000
|
|
Dividends
|
1,000
|
|
|
Rent earned
|
|
16,000
|
|
Commissions expense
|
1,000
|
|
|
Depreciation expense-truck
|
0
|
|
|
Supplies expense
|
0
|
|
|
Salaries expense
|
7,000
|
|
|
Telephone expense
|
0
|
|
|
Income tax expense
|
0
|
|
|
Rent expense
|
5,600
|
|
|
Totals
|
30,400
|
30,400
|
The following additional information is available:
1. A physical count indicates that $300 of supplies is still on hand at December 31.
2. The truck was purchased on July 1; it has an estimated useful life of 4 years.
3. One day of salaries for December 31 is unpaid; the unpaid amount of $200 will be included in the first Friday payment in January.
4. The balance in the Unearned Rent Revenue account represents six months' rental of warehouse space, effective October 1.
5. A $100 bill for December telephone charges has not yet been recorded.
6. Income taxes expense for the year is $300. This amount will be paid in the next fiscal year.
Required:
1. Prepare all necessary adjusting entries at December 31, 20x5.
2. Prepare an adjusted trial balance at December 31, 20x5.
3. Prepare an income statement, statement of retained earnings, and a balance sheet.
4. Prepare and record closing entries including descriptions.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.
Attachment:- Template.rar