Oriole Travel Court was organized on July 1, 2021, by Betty Johnson. Betty is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Betty prepared the following income statement for her fourth quarter, which ended June 30, 2022. ORIOLE TRAVEL COURT Income Statement For the Quarter Ended June 30, 2022 Revenues Rent revenue $213,800 Operating expenses Advertising expense $ 4,245 Salaries and wages expense 82,015 Utilities expense 910 Depreciation expense 2,750 Maintenance and repairs expense 4,105 Total operating expenses 94,025 Net income $119,775 Betty suspected that something was wrong with the statement because net income had never exceeded $30,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the income statement and other data. You first look at the trial balance. In addition to the account balances reported above in the income statement, the trial balance contains the following additional selected balances at June 30, 2022. Supplies $ 9,160 Prepaid Insurance 14,400 Notes Payable 14,000 You then make inquiries and discover the following. 1. Oriole rentals revenues include advanced rental payments received for summer occupancy, in the amount of $57,060. 2. There were $1,810 of supplies on hand at June 30. 3. Prepaid insurance resulted from the payment of a one-year policy on April 1, 2022. 4. The mail in July 2022 brought the following bills: advertising for the week of June 24, $130; repairs made June 18, $4,480; and utilities for the month of June, $225. 5. Wages expense is $310 per day. At June 30, four days’ wages have been incurred but not paid. 6. The note payable is a 6% note dated May 1, 2022, and due on July 31, 2022. 7. Income tax of $14,250 for the quarter is due in July but has not yet been recorded. (a) Prepare any adjusting journal entries required at June 30, 2022. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. enter an account title to record the first transaction enter a debit amount enter a credit amount enter an account title to record the first transaction enter a debit amount enter a credit amount 2. enter an account title to record the second transaction enter a debit amount enter a credit amount enter an account title to record the second transaction enter a debit amount enter a credit amount 3. enter an account title to record the third transaction enter a debit amount enter a credit amount enter an account title to record the third transaction enter a debit amount enter a credit amount 4. enter an account title to record the fourth transaction enter a debit amount enter a credit amount enter an account title to record the fourth transaction enter a debit amount enter a credit amount enter an account title to record the fourth transaction enter a debit amount enter a credit amount enter an account title to record the fourth transaction enter a debit amount enter a credit amount 5. enter an account title to record the fifth transaction enter a debit amount enter a credit amount enter an account title to record the fifth transaction enter a debit amount enter a credit amount 6. enter an account title to record the sixth transaction enter a debit amount enter a credit amount enter an account title to record the sixth transaction enter a debit amount enter a credit amount 7. enter an account title to record the seventh transaction enter a debit amount enter a credit amount enter an account title to record the seventh transaction enter a debit amount enter a credit amoun
Oriole Travel Court was organized on July 1, 2021, by Betty Johnson. Betty is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Betty prepared the following income statement for her fourth quarter, which ended June 30, 2022. ORIOLE TRAVEL COURT Income Statement For the Quarter Ended June 30, 2022 Revenues Rent revenue $213,800 Operating expenses Advertising expense $ 4,245 Salaries and wages expense 82,015 Utilities expense 910 Depreciation expense 2,750 Maintenance and repairs expense 4,105 Total operating expenses 94,025 Net income $119,775 Betty suspected that something was wrong with the statement because net income had never exceeded $30,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the income statement and other data. You first look at the trial balance. In addition to the account balances reported above in the income statement, the trial balance contains the following additional selected balances at June 30, 2022. Supplies $ 9,160 Prepaid Insurance 14,400 Notes Payable 14,000 You then make inquiries and discover the following. 1. Oriole rentals revenues include advanced rental payments received for summer occupancy, in the amount of $57,060. 2. There were $1,810 of supplies on hand at June 30. 3. Prepaid insurance resulted from the payment of a one-year policy on April 1, 2022. 4. The mail in July 2022 brought the following bills: advertising for the week of June 24, $130; repairs made June 18, $4,480; and utilities for the month of June, $225. 5. Wages expense is $310 per day. At June 30, four days’ wages have been incurred but not paid. 6. The note payable is a 6% note dated May 1, 2022, and due on July 31, 2022. 7. Income tax of $14,250 for the quarter is due in July but has not yet been recorded. (a) Prepare any adjusting journal entries required at June 30, 2022. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. enter an account title to record the first transaction enter a debit amount enter a credit amount enter an account title to record the first transaction enter a debit amount enter a credit amount 2. enter an account title to record the second transaction enter a debit amount enter a credit amount enter an account title to record the second transaction enter a debit amount enter a credit amount 3. enter an account title to record the third transaction enter a debit amount enter a credit amount enter an account title to record the third transaction enter a debit amount enter a credit amount 4. enter an account title to record the fourth transaction enter a debit amount enter a credit amount enter an account title to record the fourth transaction enter a debit amount enter a credit amount enter an account title to record the fourth transaction enter a debit amount enter a credit amount enter an account title to record the fourth transaction enter a debit amount enter a credit amount 5. enter an account title to record the fifth transaction enter a debit amount enter a credit amount enter an account title to record the fifth transaction enter a debit amount enter a credit amount 6. enter an account title to record the sixth transaction enter a debit amount enter a credit amount enter an account title to record the sixth transaction enter a debit amount enter a credit amount 7. enter an account title to record the seventh transaction enter a debit amount enter a credit amount enter an account title to record the seventh transaction enter a debit amount enter a credit amoun
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Oriole Travel Court was organized on July 1, 2021, by Betty Johnson. Betty is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Betty prepared the following income statement for her fourth quarter, which ended June 30, 2022.
Betty suspected that something was wrong with the statement because net income had never exceeded $30,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the income statement and other data.
You first look at the trial balance. In addition to the account balances reported above in the income statement, the trial balance contains the following additional selected balances at June 30, 2022.
You then make inquiries and discover the following.
ORIOLE TRAVEL COURT
Income Statement For the Quarter Ended June 30, 2022 |
||||
---|---|---|---|---|
Revenues
|
||||
Rent revenue
|
$213,800 | |||
Operating expenses
|
||||
Advertising expense
|
$ 4,245 | |||
Salaries and wages expense
|
82,015 | |||
Utilities expense
|
910 | |||
|
2,750 | |||
Maintenance and repairs expense
|
4,105
|
|||
Total operating expenses
|
94,025
|
|||
Net income
|
$119,775
|
Betty suspected that something was wrong with the statement because net income had never exceeded $30,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the income statement and other data.
You first look at the trial balance. In addition to the account balances reported above in the income statement, the trial balance contains the following additional selected balances at June 30, 2022.
Supplies
|
$ 9,160 | |
---|---|---|
Prepaid Insurance
|
14,400 | |
Notes Payable
|
14,000 |
You then make inquiries and discover the following.
1. | Oriole rentals revenues include advanced rental payments received for summer occupancy, in the amount of $57,060. | |
2. | There were $1,810 of supplies on hand at June 30. | |
3. | Prepaid insurance resulted from the payment of a one-year policy on April 1, 2022. | |
4. | The mail in July 2022 brought the following bills: advertising for the week of June 24, $130; repairs made June 18, $4,480; and utilities for the month of June, $225. | |
5. | Wages expense is $310 per day. At June 30, four days’ wages have been incurred but not paid. | |
6. | The note payable is a 6% note dated May 1, 2022, and due on July 31, 2022. | |
7. | Income tax of $14,250 for the quarter is due in July but has not yet been recorded. |
(a)
Prepare any adjusting journal entries required at June 30, 2022. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No.
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
1.
|
enter an account title to record the first transaction
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the first transaction
|
enter a debit amount
|
enter a credit amount
|
|
2.
|
enter an account title to record the second transaction
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the second transaction
|
enter a debit amount
|
enter a credit amount
|
|
3.
|
enter an account title to record the third transaction
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the third transaction
|
enter a debit amount
|
enter a credit amount
|
|
4.
|
enter an account title to record the fourth transaction
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the fourth transaction
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record the fourth transaction
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record the fourth transaction
|
enter a debit amount
|
enter a credit amount
|
|
5.
|
enter an account title to record the fifth transaction
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the fifth transaction
|
enter a debit amount
|
enter a credit amount
|
|
6.
|
enter an account title to record the sixth transaction
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the sixth transaction
|
enter a debit amount
|
enter a credit amount
|
|
7.
|
enter an account title to record the seventh transaction
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the seventh transaction
|
enter a debit amount
|
enter a credit amount
|
(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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