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ACCOUNTS RECEIVABLE 8. SUPPLIES PREPAID INSURANCE 12 EQUIPMENT 35 ACCUMULATED DEPRECIATION ACCOUNTS PAYABLE 4 INTEREST PAYABLE WAGES PAYABLE UNEARNED REVENUE 20 LOAN PAYABLE 100 COMMON STOCK RETAINED EARNINGS 10 25 DIVIDENDS 30

ACCOUNTS RECEIVABLE 8. SUPPLIES PREPAID INSURANCE 12 EQUIPMENT 35 ACCUMULATED DEPRECIATION ACCOUNTS PAYABLE 4 INTEREST PAYABLE WAGES PAYABLE UNEARNED REVENUE 20 LOAN PAYABLE 100 COMMON STOCK RETAINED EARNINGS 10 25 DIVIDENDS 30

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Post closing trial balance please
### Unadjusted Trial Balance #### Accounts and Balances **Debit:** - Cash: $100 - Accounts Receivable: $8 - Supplies: $9 - Prepaid Insurance: $12 - Equipment: $35 - Dividends: $30 - Depreciation Expense: $— - Interest Expense: $— - Insurance Expense: $4 - Rent Expense: $12 - Supplies Expense: $4 - Utilities Expense: $9 - Wages Expense: $36 **Credit:** - Accounts Payable: $4 - Interest Payable: $— - Wages Payable: $— - Unearned Revenue: $20 - Loan Payable: $100 - Common Stock: $10 - Retained Earnings: $25 - Revenue: $100 **Total Debits and Credits:** - Total Debits: $259 - Total Credits: $259 ### Additional Information for Year-End Adjustments Use the following information to make adjusting journal entries in good form: - **Year-end adjustments**: Details needed for making precise accounting entries that ensure the financial statements reflect true and fair values. This trial balance is a preliminary step in the accounting cycle, ensuring that debits and credits are balanced before making necessary adjustments for accurate financial reporting.
Transcribed Image Text:### Unadjusted Trial Balance #### Accounts and Balances **Debit:** - Cash: $100 - Accounts Receivable: $8 - Supplies: $9 - Prepaid Insurance: $12 - Equipment: $35 - Dividends: $30 - Depreciation Expense: $— - Interest Expense: $— - Insurance Expense: $4 - Rent Expense: $12 - Supplies Expense: $4 - Utilities Expense: $9 - Wages Expense: $36 **Credit:** - Accounts Payable: $4 - Interest Payable: $— - Wages Payable: $— - Unearned Revenue: $20 - Loan Payable: $100 - Common Stock: $10 - Retained Earnings: $25 - Revenue: $100 **Total Debits and Credits:** - Total Debits: $259 - Total Credits: $259 ### Additional Information for Year-End Adjustments Use the following information to make adjusting journal entries in good form: - **Year-end adjustments**: Details needed for making precise accounting entries that ensure the financial statements reflect true and fair values. This trial balance is a preliminary step in the accounting cycle, ensuring that debits and credits are balanced before making necessary adjustments for accurate financial reporting.
**Instructions for Adjusting Journal Entries** The following information is provided to assist in preparing the necessary adjusting journal entries: a) **Equipment Purchase by Fall Fun, Inc:** - Equipment was acquired for $35 on July 1, 2021. - The equipment has a useful life of 5 years and a salvage value of $5. - Depreciation method: straight-line. b) **Loan Borrowed by FF:** - FF took a loan of $100 on February 1, 2021. - The loan requires 12% annual interest payments, starting January 31, 2022. - Principal repayment is scheduled for 2024. c) **Prepaid Customer Services:** - By the accounting period's end, FF Inc earned half of the payment for tourist services previously received from customers. d) **Supplies on Hand:** - Supplies totaling $3 remain as of the balance sheet date. e) **Prepaid Insurance:** - The prepaid insurance on the unadjusted trial balance covers a policy from November 1, 2021, to October 31, 2022. - The insurance payment has been recorded. f) **Accrued Employee Wages:** - Employees earned $8 for wages in December 2021, which remain unpaid until January 2022.
Transcribed Image Text:**Instructions for Adjusting Journal Entries** The following information is provided to assist in preparing the necessary adjusting journal entries: a) **Equipment Purchase by Fall Fun, Inc:** - Equipment was acquired for $35 on July 1, 2021. - The equipment has a useful life of 5 years and a salvage value of $5. - Depreciation method: straight-line. b) **Loan Borrowed by FF:** - FF took a loan of $100 on February 1, 2021. - The loan requires 12% annual interest payments, starting January 31, 2022. - Principal repayment is scheduled for 2024. c) **Prepaid Customer Services:** - By the accounting period's end, FF Inc earned half of the payment for tourist services previously received from customers. d) **Supplies on Hand:** - Supplies totaling $3 remain as of the balance sheet date. e) **Prepaid Insurance:** - The prepaid insurance on the unadjusted trial balance covers a policy from November 1, 2021, to October 31, 2022. - The insurance payment has been recorded. f) **Accrued Employee Wages:** - Employees earned $8 for wages in December 2021, which remain unpaid until January 2022.
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The post closing trial balance is prepared after closing temporary accounts and adjusting the trial balance accordingly.

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