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Question 1 (Total 20 marks) The following unadjusted and adjusted trial balances are from the current year's accounting system for Trapper. Trapper Trial Balances For Year Ended December 31 Unadjusted Adjusted Trial Balance Trial Balance Debit Credit Debit Credit Cash 12,100 12,100 Accounts receivable 16,300 17,240 Office supplies 1,005 625 Prepaid rent 1,000 450 Equipment 20,700 20,700 Accumulated depreciation-equipment 1,200 5,200 Accounts payable. 3,020 3,020 Salaries Payable... 2,000 Interest Payable.... 1,200 Uneamed services revenue.... 4,200 3,000 Notes Payable... 20,000 20,000 D. Ruiz, Capital Services revenue.. Salaries expense Utilities expense.... Rent expense... Supplies expense Interest expense.... 12,985 12,985 32,400 34,540 14,500 16,500 5,300 5,300 2,900 3,450 380 1,200 Depreciation expense- equipment... 4,000 Totals..... 73,805 73,805 81,945 81,945 Required: 1. Present the seven adjusting journal entries that explain the changes in the account balances from the unadjusted to the adjusted trial balance. 2. Analyze the impact on financial statements (i.e., Total Assets, Total Liabilities, Net Profit) if Trapper didn't record any of the adjusting entries and reach a conclusion on whether the Total Assets, Total Liabilities, Net Profit, respectively, would be overstated or understated. Please show your calculation process.

Question 1 (Total 20 marks) The following unadjusted and adjusted trial balances are from the current year's accounting system for Trapper. Trapper Trial Balances For Year Ended December 31 Unadjusted Adjusted Trial Balance Trial Balance Debit Credit Debit Credit Cash 12,100 12,100 Accounts receivable 16,300 17,240 Office supplies 1,005 625 Prepaid rent 1,000 450 Equipment 20,700 20,700 Accumulated depreciation-equipment 1,200 5,200 Accounts payable. 3,020 3,020 Salaries Payable... 2,000 Interest Payable.... 1,200 Uneamed services revenue.... 4,200 3,000 Notes Payable... 20,000 20,000 D. Ruiz, Capital Services revenue.. Salaries expense Utilities expense.... Rent expense... Supplies expense Interest expense.... 12,985 12,985 32,400 34,540 14,500 16,500 5,300 5,300 2,900 3,450 380 1,200 Depreciation expense- equipment... 4,000 Totals..... 73,805 73,805 81,945 81,945 Required: 1. Present the seven adjusting journal entries that explain the changes in the account balances from the unadjusted to the adjusted trial balance. 2. Analyze the impact on financial statements (i.e., Total Assets, Total Liabilities, Net Profit) if Trapper didn't record any of the adjusting entries and reach a conclusion on whether the Total Assets, Total Liabilities, Net Profit, respectively, would be overstated or understated. Please show your calculation process.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 8SPB: UNCOLLECTIBLE ACCOUNTSALLOWANCE METHOD Lewis Warehouse used the allowance method to record the...
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Question 1 (Total 20 marks) The following unadjusted and adjusted trial balances are from the current year's accounting system for Trapper. Trapper Trial Balances For Year Ended December 31 Unadjusted Adjusted Trial Balance Trial Balance Debit Credit Debit Credit Cash 12,100 12,100 Accounts receivable 16,300 17,240 Office supplies 1,005 625 Prepaid rent 1,000 450 Equipment 20,700 20,700 Accumulated depreciation-equipment 1,200 5,200 Accounts payable. 3,020 3,020 Salaries Payable... 2,000 Interest Payable.... 1,200 Uneamed services revenue.... 4,200 3,000 Notes Payable... 20,000 20,000 D. Ruiz, Capital Services revenue.. Salaries expense Utilities expense.... Rent expense... Supplies expense Interest expense.... 12,985 12,985 32,400 34,540 14,500 16,500 5,300 5,300 2,900 3,450 380 1,200 Depreciation expense- equipment... 4,000 Totals..... 73,805 73,805 81,945 81,945 Required: 1. Present the seven adjusting journal entries that explain the changes in the account balances from the unadjusted to the adjusted trial balance. 2. Analyze the impact on financial statements (i.e., Total Assets, Total Liabilities, Net Profit) if Trapper didn't record any of the adjusting entries and reach a conclusion on whether the Total Assets, Total Liabilities, Net Profit, respectively, would be overstated or understated. Please show your calculation process.
Transcribed Image Text:Question 1 (Total 20 marks) The following unadjusted and adjusted trial balances are from the current year's accounting system for Trapper. Trapper Trial Balances For Year Ended December 31 Unadjusted Adjusted Trial Balance Trial Balance Debit Credit Debit Credit Cash 12,100 12,100 Accounts receivable 16,300 17,240 Office supplies 1,005 625 Prepaid rent 1,000 450 Equipment 20,700 20,700 Accumulated depreciation-equipment 1,200 5,200 Accounts payable. 3,020 3,020 Salaries Payable... 2,000 Interest Payable.... 1,200 Uneamed services revenue.... 4,200 3,000 Notes Payable... 20,000 20,000 D. Ruiz, Capital Services revenue.. Salaries expense Utilities expense.... Rent expense... Supplies expense Interest expense.... 12,985 12,985 32,400 34,540 14,500 16,500 5,300 5,300 2,900 3,450 380 1,200 Depreciation expense- equipment... 4,000 Totals..... 73,805 73,805 81,945 81,945 Required: 1. Present the seven adjusting journal entries that explain the changes in the account balances from the unadjusted to the adjusted trial balance. 2. Analyze the impact on financial statements (i.e., Total Assets, Total Liabilities, Net Profit) if Trapper didn't record any of the adjusting entries and reach a conclusion on whether the Total Assets, Total Liabilities, Net Profit, respectively, would be overstated or understated. Please show your calculation process.
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