Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; Optional Spreadsheet. The unadjusted trial balance of Recessive Interiors at January 31, 2016, the end of the year, follows: Recessive Interiors Unadjusted Trial Balance January 31, 2016 Debit Balances Credit Balances Cash 13,100 Supplies 8,000 Prepaid Insurance 7,500 Equipment 113,000 Accumulated Depreciation-Equipment 12,000 Trucks 90,000 Accumulated Depreciation-Trucks 27,100 Accounts Payable 4,500 Jeanne McQuay, Capital 126,400 Jeanne McQuay, Drawing 3,000 Service Revenue 155,000 Wages Expense 72,000 Rent Expense 7,600 Truck Expense 5,350 Miscellaneous Expense 5,450 325,000 325,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following additional accounts from Recessive Interiors' chart of accounts should be used: Wages Payable, 22; Income Summary, 33; Depreciation Expense-Equipment, 54; Supplies Expense, 55; Depreciation Expense-Trucks, 56; Insurance Expense, 57.

The data needed to determine year-end adjustments are as follows:

  1. Supplies on hand at January 31 are $2,850.
  2. Insurance premiums expired during the year are $3,150.
  3. Depreciation of equipment during the year is $5,250.
  4. Depreciation of trucks during the year is $4,000.
  5. Wages accrued but not paid at January 31 are $900.

Required:

1. Prepare an income statement.

2. Prepare a Statement of Owner's Equity (no additional investments were made during the year.)

3. Prepare a balance sheet.

 

Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; Optional Spreadsheet.
The unadjusted trial balance of Recessive Interiors at January 31, 2016, the end of the year, follows:
Recessive Interiors
Unadjusted Trial Balance
January 31, 2016
Debit Balances Credit Balances
Cash
13,100
Supplies
8,000
Prepaid Insurance
7,500
Equipment
113,000
Accumulated Depreciation-Equipment
12,000
Trucks
90,000
Accumulated Depreciation-Trucks
27,100
Accounts Payable
4,500
Jeanne McQuay, Capital
126,400
Jeanne McQuay, Drawing
3,000
Service Revenue
155,000
Wages Expense
72,000
Rent Expense
7,600
Truck Expense
5,350
Miscellaneous Expense
5,450
325,000
325,000
Transcribed Image Text:Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; Optional Spreadsheet. The unadjusted trial balance of Recessive Interiors at January 31, 2016, the end of the year, follows: Recessive Interiors Unadjusted Trial Balance January 31, 2016 Debit Balances Credit Balances Cash 13,100 Supplies 8,000 Prepaid Insurance 7,500 Equipment 113,000 Accumulated Depreciation-Equipment 12,000 Trucks 90,000 Accumulated Depreciation-Trucks 27,100 Accounts Payable 4,500 Jeanne McQuay, Capital 126,400 Jeanne McQuay, Drawing 3,000 Service Revenue 155,000 Wages Expense 72,000 Rent Expense 7,600 Truck Expense 5,350 Miscellaneous Expense 5,450 325,000 325,000
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