Homework Help is Here – Start Your Trial Now!
Business
Accounting
Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2016, appears below. December 31 is the company's fiscal year-end. The company uses the per- petual inventory system. Account Title Debits Credits Cash 23,300 Accounts receivable 32,500 Supplies Prepaid rent Inventory Office equipment Accumulated depreciation-office equipment Accounts payable Salaries and wages payable Note payable -0- -0- 65,000 75,000 10,000 26,100 3,000 30,000 Common stock 80,000 Retained earnings 16,050 Sales revenue 180,000 Cost of goods sold Interest expense Salaries and wages expense Rent expense Supplies expense Utility expense 95,000 -0- 32,350 14,000 2,000 6,000 Totals 345,150 345,150

Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2016, appears below. December 31 is the company's fiscal year-end. The company uses the per- petual inventory system. Account Title Debits Credits Cash 23,300 Accounts receivable 32,500 Supplies Prepaid rent Inventory Office equipment Accumulated depreciation-office equipment Accounts payable Salaries and wages payable Note payable -0- -0- 65,000 75,000 10,000 26,100 3,000 30,000 Common stock 80,000 Retained earnings 16,050 Sales revenue 180,000 Cost of goods sold Interest expense Salaries and wages expense Rent expense Supplies expense Utility expense 95,000 -0- 32,350 14,000 2,000 6,000 Totals 345,150 345,150

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

Information necessary to prepare the year-end adjusting entries appears below.
1. The office equipment was purchased in 2014 and is being depreciated using the straight-line method over an
eight-year useful life with no salvage value.
2. Accrued salaries and wages at year-end should be $4,500.
3. The company borrowed $30,000 on September 1, 2016. The principal is due to be repaid in 10 years. Interest
is payable twice a year on each August 31 and February 28 at an annual rate of 10%.
4. The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $500.
5. Prepaid rent at year-end should be $1,000.
Required:
Prepare the necessary December 31, 2016, adjusting entries.

Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2016, appears below. December 31 is the company's fiscal year-end. The company uses the per- petual inventory system. Account Title Debits Credits Cash 23,300 Accounts receivable 32,500 Supplies Prepaid rent Inventory Office equipment Accumulated depreciation-office equipment Accounts payable Salaries and wages payable Note payable -0- -0- 65,000 75,000 10,000 26,100 3,000 30,000 Common stock 80,000 Retained earnings 16,050 Sales revenue 180,000 Cost of goods sold Interest expense Salaries and wages expense Rent expense Supplies expense Utility expense 95,000 -0- 32,350 14,000 2,000 6,000 Totals 345,150 345,150
Transcribed Image Text:Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2016, appears below. December 31 is the company's fiscal year-end. The company uses the per- petual inventory system. Account Title Debits Credits Cash 23,300 Accounts receivable 32,500 Supplies Prepaid rent Inventory Office equipment Accumulated depreciation-office equipment Accounts payable Salaries and wages payable Note payable -0- -0- 65,000 75,000 10,000 26,100 3,000 30,000 Common stock 80,000 Retained earnings 16,050 Sales revenue 180,000 Cost of goods sold Interest expense Salaries and wages expense Rent expense Supplies expense Utility expense 95,000 -0- 32,350 14,000 2,000 6,000 Totals 345,150 345,150
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Introduction to Governmental accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS