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Service Company's Trial Balance on December Account name Debit 70 3,00 insurance office rent 80 70 nt 29,00

Service Company's Trial Balance on December Account name Debit 70 3,00 insurance office rent 80 70 nt 29,00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cleaning Service Company's Trial Balance on December 31, 2020 is as follows: Account name Debit Credit Cash 700 Supplies Pre-paid insurance Pre-paid office rent Equipment Accumulated depreciation - Equipment Accounts payable 3,000 800 700 29,000 7,000 2,800 Unearned service revenue 500 Share capital - Ordinary Retained earnings 5,800 2,100 Dividend 3,000 Service revenue 25,000 Salary expense Total 6,000 43,200 43,200 Required: 1. Com up with 02 adjusting transactions for pre-paid expenses, 01 transaction for unearned revenue, 01 transaction for accrued revenue and 01 transaction for depreciation expense and 01 transaction for accrued expense on 31 Dec, 2020. (These transactions are given by yourself with reasonable numbers): Prepare adjusted trial balance 2. Prepare Income Statement, Statement of Retained Earnings and Statement of Financial Position for December, 2020. Why are adjutsing entries needed?
Transcribed Image Text:Cleaning Service Company's Trial Balance on December 31, 2020 is as follows: Account name Debit Credit Cash 700 Supplies Pre-paid insurance Pre-paid office rent Equipment Accumulated depreciation - Equipment Accounts payable 3,000 800 700 29,000 7,000 2,800 Unearned service revenue 500 Share capital - Ordinary Retained earnings 5,800 2,100 Dividend 3,000 Service revenue 25,000 Salary expense Total 6,000 43,200 43,200 Required: 1. Com up with 02 adjusting transactions for pre-paid expenses, 01 transaction for unearned revenue, 01 transaction for accrued revenue and 01 transaction for depreciation expense and 01 transaction for accrued expense on 31 Dec, 2020. (These transactions are given by yourself with reasonable numbers): Prepare adjusted trial balance 2. Prepare Income Statement, Statement of Retained Earnings and Statement of Financial Position for December, 2020. Why are adjutsing entries needed?
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