Question: Completing the accounting cycle from adjusting entries to post-closing trial balance. The trial balance of Wolfe Anvils at December 31, 2014, and the data for the adjustments are as follow: WOLFE ANVILS Unadjusted Trial Balance December 31, 2014 Account Title Cash Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Unearned Revenue Wolfe, Capital Wolfe, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Supplies Expense Total Adjustment data: Balance Debit Credit $ 4,300 15,000 2,700 1,600 31,200 $ 3,000 6,900 5,400 26,600 3,500 18,900 2,500 $ 60,800 $ 60,800 a. Unearned revenue still unearned at December 31, $1,200. b. Prepaid Rent still in force at December 31, $2,500. c. Office Supplies used, $1,000. d. Depreciation, $300. e. Accrued Salaries Expense at December 31, $200. Requirements: 1.Open the T-accounts using the balances in the unadjusted trial balance. 2.Prepare the adjusting entries and post to the ledger accounts(T-accounts), using the adjustment data given. 3.Prepare an adjusted trial balance. 4.Prepare the income statement, the statement of owner's equity, and the balance sheet in report form. Assume that there were no contributions made by the owner during the year. 5. Prepare the closing entries and post to the ledger accounts (T-accounts). 6. Prepare a post-closing trial balance. 7. Calculate the current ratio at December 31.
Question: Completing the accounting cycle from adjusting entries to post-closing trial balance. The trial balance of Wolfe Anvils at December 31, 2014, and the data for the adjustments are as follow: WOLFE ANVILS Unadjusted Trial Balance December 31, 2014 Account Title Cash Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Unearned Revenue Wolfe, Capital Wolfe, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Supplies Expense Total Adjustment data: Balance Debit Credit $ 4,300 15,000 2,700 1,600 31,200 $ 3,000 6,900 5,400 26,600 3,500 18,900 2,500 $ 60,800 $ 60,800 a. Unearned revenue still unearned at December 31, $1,200. b. Prepaid Rent still in force at December 31, $2,500. c. Office Supplies used, $1,000. d. Depreciation, $300. e. Accrued Salaries Expense at December 31, $200. Requirements: 1.Open the T-accounts using the balances in the unadjusted trial balance. 2.Prepare the adjusting entries and post to the ledger accounts(T-accounts), using the adjustment data given. 3.Prepare an adjusted trial balance. 4.Prepare the income statement, the statement of owner's equity, and the balance sheet in report form. Assume that there were no contributions made by the owner during the year. 5. Prepare the closing entries and post to the ledger accounts (T-accounts). 6. Prepare a post-closing trial balance. 7. Calculate the current ratio at December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question:
Completing the accounting cycle from adjusting entries to post-closing trial balance. The trial balance of
Wolfe Anvils at December 31, 2014, and the data for the adjustments are as follow:
WOLFE ANVILS
Unadjusted Trial Balance
December 31, 2014
Account Title
Cash
Accounts Receivable
Prepaid Rent
Office Supplies
Equipment
Accumulated Depreciation-Equipment
Accounts Payable
Salaries Payable
Unearned Revenue
Wolfe, Capital
Wolfe, Withdrawals
Service Revenue
Salaries Expense
Rent Expense
Depreciation Expense-Equipment
Supplies Expense
Total
Adjustment data:
Balance
Debit
Credit
$ 4,300
15,000
2,700
1,600
31,200
$ 3,000
6,900
5,400
26,600
3,500
18,900
2,500
$ 60,800
$ 60,800
a. Unearned revenue still unearned at December 31, $1,200.
b. Prepaid Rent still in force at December 31, $2,500.
c. Office Supplies used, $1,000.
d. Depreciation, $300.
e. Accrued Salaries Expense at December 31, $200.
Requirements:
1.Open the T-accounts using the balances in the unadjusted trial balance.
2.Prepare the adjusting entries and post to the ledger accounts(T-accounts), using the adjustment
data given.
3.Prepare an adjusted trial balance.
4.Prepare the income statement, the statement of owner's equity, and the balance sheet in report
form. Assume that there were no contributions made by the owner during the year.
5. Prepare the closing entries and post to the ledger accounts (T-accounts).
6. Prepare a post-closing trial balance.
7. Calculate the current ratio at December 31.
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