DEBIT CREDIT CASH 100 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 10 IRETAINED
DEBIT CREDIT CASH 100 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 10 IRETAINED
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Make income statement and post closing trial balance

Transcribed Image Text:Use this info below to make adjusting journal entries (in good form)
a) Fall Fun, Inc purchased and began using the equipment for $35 on July 1, 2021. (The purchase transaction has already been recorded.) The equipment is expected to last 5 years and have a salvage value of $5. FF, Inc uses straight-line depreciation.
b) FF borrowed $100 on Feb 1, 2021 (the loan is already recorded). The loan requires 12% annual cash interest payments beginning January 31, 2022. The principal balance will not be repaid by FF, Inc until 2024.
c) By the end of the accounting period, FF Inc earned half of the amount customers previously paid for tourist services.
d) There are $3 remaining in supplies as of the balance sheet date.
e) The Prepaid Insurance on the Unadjusted TB represents a 12-month (1 year) insurance policy from Nov 1, 2021 to Oct 31, 2022. The cash payment for the insurance has already been recorded.
f) Employees are owed $8 for their wages from December 2021 and not paid until January 2022.

Transcribed Image Text:**Unadjusted Trial Balance**
| Account | Unadjusted Debit | Unadjusted Credit |
|----------------------------|------------------|-------------------|
| Cash | 100 | |
| Accounts Receivable | 8 | |
| Supplies | 9 | |
| Prepaid Insurance | 12 | |
| Equipment | 35 | |
| Accumulated Depreciation | | |
| Accounts Payable | | 4 |
| Interest Payable | | |
| Wages Payable | | |
| Unearned Revenue | | 20 |
| Loan Payable | | 100 |
| Common Stock | | 10 |
| Retained Earnings | | 25 |
| Dividends | 30 | |
| Revenue | | 100 |
| Depreciation Expense | | |
| Interest Expense | | |
| Insurance Expense | 4 | |
| Rent Expense | 12 | |
| Supplies Expense | 4 | |
| Utilities Expense | 9 | |
| Wages Expense | 36 | |
**Total Debits & Credits**: $259 $259
**Additional Information Needed for Year-End Adjustments**:
- Use this information to make adjusting journal entries (in good form).
---
This table represents an unadjusted trial balance, a vital financial statement used to ensure that debits and credits are balanced before adjusting entries are made. It provides insights into the raw financial data of a company before adjustments for accuracies, like accrued expenses or accrued revenues, are recorded.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps

Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education