The following trial balance was taken from the books of Venus Corporation at December 31, 2020: Account                                                                                                           Debit            Credit Cash........................................................................................................... $   40,000 Accounts Receivable.................................................................................... 106,000 Prepaid Rent ...............................................................................................     12,800                   Note Receivable................................................................................................ 8,000 Merchandise Inventory................................................................................... 54,000 Unexpired Insurance......................................................................................... 4,800 Furniture and Equipment.............................................................................. 138,000 Accumulated Depreciation........................................................................................         15,000 Accounts Payable.......................................................................................................         12,600 Common Shares.........................................................................................................         44,000 Retained Earnings......................................................................................................         65,000 Sales...........................................................................................................................       410,000 Cost of Goods Sold....................................................................................... 128,000 Salaries Expense............................................................................................. 53,000        Totals.................................................................................................. $ 546,600   $ 546,600   At year end, the following items have not yet been recorded. Insurance expired during the year, $ 3,000. Depreciation on furniture and equipment, 10% per year. Interest at 9% is receivable on the note for one full year. Prepaid rent used up during the year, $6,000. Accrued salaries at December 31, $ 6,200.   Instructions a) Prepare in good form the necessary adjusting entries, adding any new accounts which you may need. Narratives (explanations) are not required for journal entries.        Question 3 (continued)                             b) Prepare the necessary closing entries.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
100%

The following trial balance was taken from the books of Venus Corporation at December 31, 2020:

Account                                                                                                           Debit            Credit

Cash........................................................................................................... $   40,000

Accounts Receivable.................................................................................... 106,000

Prepaid Rent ...............................................................................................     12,800                  

Note Receivable................................................................................................ 8,000

Merchandise Inventory................................................................................... 54,000

Unexpired Insurance......................................................................................... 4,800

Furniture and Equipment.............................................................................. 138,000

Accumulated Depreciation........................................................................................         15,000

Accounts Payable.......................................................................................................         12,600

Common Shares.........................................................................................................         44,000

Retained Earnings......................................................................................................         65,000

Sales...........................................................................................................................       410,000

Cost of Goods Sold....................................................................................... 128,000

Salaries Expense............................................................................................. 53,000

       Totals.................................................................................................. $ 546,600   $ 546,600

 

At year end, the following items have not yet been recorded.

  1. Insurance expired during the year, $ 3,000.
  2. Depreciation on furniture and equipment, 10% per year.
  3. Interest at 9% is receivable on the note for one full year.
  4. Prepaid rent used up during the year, $6,000.
  5. Accrued salaries at December 31, $ 6,200.

 

Instructions

  1. a) Prepare in good form the necessary adjusting entries, adding any new accounts which you may need. Narratives (explanations) are not required for journal entries. 

 

 

 

Question 3 (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. b) Prepare the necessary closing entries. 

 

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education