North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Account Titles Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Income Tax Payable Common Stock Retained Earnings Sales Revenue Salaries and Wages Expense Utilities Expense Rent Expense Depreciation Expense Income Tax Expense Totals Other data not yet recorded at December 31: a. Rent expired during the year, $1,200. b. Depreciation expense for the year, $1,000. c. Utilities used, unrecorded, and unpaid $9,000. d. Income tax expense, $390. Debit $12,000 6,000 2,400 21,000 25,000 12,500 0 0 0 $78,900 Credit $1,000 1,000 0 24,800 2,100 50,000 $78,900 3. Post the beginning balances and adjusting entries to the following T-accounts. After entering the beginning balances and computing the adjusted ending balances, prepare an adjusted trial balance as of December 31.

North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Account Titles Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Income Tax Payable Common Stock Retained Earnings Sales Revenue Salaries and Wages Expense Utilities Expense Rent Expense Depreciation Expense Income Tax Expense Totals Other data not yet recorded at December 31: a. Rent expired during the year, $1,200. b. Depreciation expense for the year, $1,000. c. Utilities used, unrecorded, and unpaid $9,000. d. Income tax expense, $390. Debit $12,000 6,000 2,400 21,000 25,000 12,500 0 0 0 $78,900 Credit $1,000 1,000 0 24,800 2,100 50,000 $78,900 3. Post the beginning balances and adjusting entries to the following T-accounts. After entering the beginning balances and computing the adjusted ending balances, prepare an adjusted trial balance as of December 31.

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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