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g expe mation a paym The fir

g expe mation a paym The fir

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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The balances of the ledger accounts for Oleman Services on January 31, 20X1, and the information needed for adjustments are shown below. Account Name Balance Cash $ 8,100 Accounts receivable 4,300 Supplies 3,150 Prepaid insurance 1,560 Equipment 5,760 Accumulated depreciation-Equipment - Accounts payable 910 Jeff Oleman, Capital 22,000 Jeff Oleman, Drawing 3,100 Fees income 12,500 Advertising expense 920 Rent expense 2,000 Salaries expense 5,800 Supplies expense - Insurance expense - Utilities expense 720 Depreciation expense-Equipment - Adjustment information: The supplies were purchased on January 1, 20X1. An inventory of supplies showed $1,000 on hand on January 31, 20X1. The amount of Prepaid Insurance represents a payment made January 1, 20X1, for a six-month insurance policy. The equipment, purchased January 1, 20X1, has an estimated useful life of 4 years with no salvage value. The firm uses the straight-line method of depreciation. Prepare the Trial Balance section, record the adjustments, and complete the worksheet.
Transcribed Image Text:The balances of the ledger accounts for Oleman Services on January 31, 20X1, and the information needed for adjustments are shown below. Account Name Balance Cash $ 8,100 Accounts receivable 4,300 Supplies 3,150 Prepaid insurance 1,560 Equipment 5,760 Accumulated depreciation-Equipment - Accounts payable 910 Jeff Oleman, Capital 22,000 Jeff Oleman, Drawing 3,100 Fees income 12,500 Advertising expense 920 Rent expense 2,000 Salaries expense 5,800 Supplies expense - Insurance expense - Utilities expense 720 Depreciation expense-Equipment - Adjustment information: The supplies were purchased on January 1, 20X1. An inventory of supplies showed $1,000 on hand on January 31, 20X1. The amount of Prepaid Insurance represents a payment made January 1, 20X1, for a six-month insurance policy. The equipment, purchased January 1, 20X1, has an estimated useful life of 4 years with no salvage value. The firm uses the straight-line method of depreciation. Prepare the Trial Balance section, record the adjustments, and complete the worksheet.
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