P4-7 (Algo) Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share LO4-1, 4-2, 4-4 [The following information applies to the questions displayed below.] Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outsi accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on Decemb 31: Tunstall, Inc. Unadjusted Trial Balance for the Year Ended December 31 Debit Credit Cash Accounts receivable Supplies Prepaid insurance 47,600 10,500 470 760 Service trucks 16,800 Accumulated depreciation 8,800 Other assets 10,660 2,370 Accounts payable Wages payable Income taxes payable Notes payable, long-term Comon stock (5,400 shares outstanding) Additional paid-in capital Retained earnings Service revenue 12,000 1,906 17,154 5,300 88,730 Wages expense Remaining expenses (not detailed; excludes income tax) 16,200 33,270 Income tax expense Totals 136, 260 136, 260 Data not yet recorded at December 31 included: a. The supplies count on December 31 reflected $230 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $760. c. Depreciation expense for the current year, $4,100. d. Wages earned by employees not yet paid on December 31, $700. e. Income tax expense, $5,080.
P4-7 (Algo) Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share LO4-1, 4-2, 4-4 [The following information applies to the questions displayed below.] Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outsi accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on Decemb 31: Tunstall, Inc. Unadjusted Trial Balance for the Year Ended December 31 Debit Credit Cash Accounts receivable Supplies Prepaid insurance 47,600 10,500 470 760 Service trucks 16,800 Accumulated depreciation 8,800 Other assets 10,660 2,370 Accounts payable Wages payable Income taxes payable Notes payable, long-term Comon stock (5,400 shares outstanding) Additional paid-in capital Retained earnings Service revenue 12,000 1,906 17,154 5,300 88,730 Wages expense Remaining expenses (not detailed; excludes income tax) 16,200 33,270 Income tax expense Totals 136, 260 136, 260 Data not yet recorded at December 31 included: a. The supplies count on December 31 reflected $230 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $760. c. Depreciation expense for the current year, $4,100. d. Wages earned by employees not yet paid on December 31, $700. e. Income tax expense, $5,080.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
QUESTION:
Record closing entry to transfer revenues and expenses to
Transcribed Image Text:P4-7 (Algo) Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income
Statement Including Earnings per Share LO4-1, 4-2, 4-4
[The following information applies to the questions displayed below.)
Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside
accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December
31:
Tunstall, Inc.
Unadjusted Trial Balance
for the Year Ended December 31
Debit
47,600
10,500
470
Credit
Cash
Accounts receivable
Supplies
Prepaid insurance
Service trucks
760
16,800
Accumulated depreciation
8,800
Other assets
10,660
Accounts payable
Wages payable
Income taxes payable
Notes payable, long-term
Common stock (5,400 shares outstanding)
Additional paid-in capital
Retained earnings
Service revenue
2,370
12,000
1,906
17,154
5,300
88,730
Wages expense
Remaining expenses
(not detailed; excludes income tax)
16,200
33,270
Income tax expense
Totals
136,260
136, 260
Data not yet recorded at December 31 included:
a. The supplies count on December 31 reflected $230 in remaining supplies on hand to be used in the next year.
b. Insurance expired during the current year, $760.
c. Depreciation expense for the current year, $4,100.
d. Wages earned by employees not yet paid on December 31, $700.
e. Income tax expense, $5,080.
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