Pedroni Fuel Company is a small oil services company owned and operated by Ray Zorzi. On October 31, 2019 the end of the current year, Pedroni Company’s accounting clerk prepared the following unadjusted trial balance Pedroni Fuel Company Unadjusted Trial Balance October 31, 2019 Debit Credit Cash 7,500 Accounts Receivable 38,400 Prepaid Insurance 7,200 Supplies 1,980 Land 112,500 Building 300,250 Accumulated Depreciation – Building 87,550 Equipment 135,300 Accumulated Depreciation – Equipment 97,950 Accounts Payable 12,150 Unearned Rent 6,750 Ray Zorzi – Capital 371,000 Ray Zorzi – Drawing 15,000 Fee’s Earned 324,600 Salary & Wages Expense 193,370 Utilities Expense 42,375 Advertising Expense 22,800 Repairs Expense 17,250 Miscellaneous Expense 6,075 Total 900,000 900,000 Year End Adjustment Unexpired insurance at October 31 = $600 Supplies on hand on October 31 = $675 Depreciation of Building for the year = $12,000 Unearned Rent on October 31 = $2,250 Accrued Salary and Wages at October 31 = $2,800 Fees earned but unbilled on October 31 = $10,050 Instructions: Journalize the adjusting entries using the following additional accounts: Salaries & Wages Payable, Rent Revenue, Insurance Expense, Depreciation Expense – Building, Depreciation Expense – Equipment, and Supplies Expense. 2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.
- Pedroni Fuel Company is a small oil services company owned and operated by Ray Zorzi. On October 31, 2019 the end of the current year, Pedroni Company’s accounting clerk prepared the following unadjusted
trial balance
Pedroni Fuel Company
Unadjusted Trial Balance
October 31, 2019
Debit Credit
Cash 7,500
Prepaid Insurance 7,200
Supplies 1,980
Land 112,500
Building 300,250
Equipment 135,300
Accumulated Depreciation – Equipment 97,950
Accounts Payable 12,150
Unearned Rent 6,750
Ray Zorzi – Capital 371,000
Ray Zorzi – Drawing 15,000
Fee’s Earned 324,600
Salary & Wages Expense 193,370
Utilities Expense 42,375
Advertising Expense 22,800
Repairs Expense 17,250
Miscellaneous Expense 6,075
Total 900,000 900,000
Year End Adjustment
Unexpired insurance at October 31 = $600
Supplies on hand on October 31 = $675
Depreciation of Building for the year = $12,000
Unearned Rent on October 31 = $2,250
Accrued Salary and Wages at October 31 = $2,800
Fees earned but unbilled on October 31 = $10,050
Instructions:
Journalize the
2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.
2. Pedroni Oil Company purchased packaging equipment on January 8 for $72,000.The equipment was expected to have a useful life of three years or 18,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during year 1, 6,000 hours in year 2, and 4,400 hours in year 3.
Determine the amount of depreciation expense for the three years ending December 31, by the
3. Pedroni Enterprises issues a $260,000, 45 day 5 % note to Zorzi Industries for merchandise inventory
A. Journalize Pedroni Enterprises entries to record:
1. The issuance of the note
2.The payment of the note at maturity
B. Journalize Zorzi Industries entries to record:
1. The receipt of the note
2. Receipt of the payment of the note at maturity
4. On July 31, 2019 the balances of the accounts appearing in the ledger of Pedroni Interiors company a furniture wholesales, are as follows.
Accumulated Depreciation – Building $365,000 Ray Zorzi – Capital $530,000
Administrative Expenses 440,000 Ray Zorzi – Drawing 15,000
Building 810,000 Sales 1,437,000
Cash 78,000 Sales tax Payable 4,500
Cost of Merchandise Sold 775,000 Selling Expense 160,000
Interest Expense 6,000 Store Supplies 16,000
Merchandise Inventory 115,000 Store Supplies Expense 21,500
Notes Payable 100,000
Instructions: Prepare the July 31, 2019 closing entries for Pedroni Interiors Company
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