The trial balance of Mabilis Repair Shop appears below the end of its calendar year: MABILIS REPAIR SHOP Trial Balance December 31, 2020 Debit Credit Cash on Hand Accounts Receivable 10,000 25,000 P Estimated Uncollectible Accounts 750 Notes Receivable 7,000 30,000 Shop Equipment Accumulated Depreciation - Shop Equipment Furniture and Fixture 2,000 8,000 Accumulated Depreciation - Furniture and Fixture Accounts Payable Notes Payable Leynes, Capital Leynes, Drawing Service Income Salaries Expense Rent Expense Supplies Expense Taxes and Licenses 5,00 11,000 12,000 44,750 1,000 30,000 8,000 8,000 4,000 1,500 3,000 P 105,500 Light and Water Expense Total P 105,500 Additional Infomation: 1. Unpaid taxes, P600. 2. Accrued salaries, P3,000 3. Accrued interest on notes payable, P200. 4. Unpaid light and water, P500. 5. Supplies on hand, P1,000. 6. Bad debts expense is estimated to be 5% of Accounts Receivable. Required: 1. Prepare the adjusting entries. 2. Prepare a 10-column worksheet. Arrange the accounts according to assets, liabilities, capital, income, and expenses 3. Income Statement

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
The trial balance of Mabilis Repair Shop appears below the end of its calendar year:
MABILIS REPAIR SHOP
Trial Balance
December 31, 2020
Debit
Credit
Cash on Hand
10,000
25,000
P
Accounts Receivable
Estimated Uncollectible Accounts
750
Notes Receivable
7,000
30,000
Shop Equipment
Accumulated Depreciation – Shop Equipment
Furniture and Fixture
2,000
8,000
Accumulated Depreciation - Furniture and Fixture
Accounts Payable
Notes Payable
Leynes, Capital
Leynes, Drawing
Service Income
Sa
Rent Expense
Supplies Expense
5,00
11,000
12,000
44,750
1,000
30,000
8,000
8,000
4,000
1,500
3,000
P 105,500
Expense
Taxes and Licenses
Light and Water Expense
Total
P
105,500
Additional Infommation:
1. Unpaid taxes, P600.
2.
Accrued salaries, P3,000
3. Accrued interest on notes payable, P200.
4. Unpaid light and water, P500.
5. Supplies on hand, P1,000.
Bad debts expense is estimated to be 5% of Accounts Receivable.
6.
Required:
1. Prepare the adjusting entries.
2. Prepare a 10-column worksheet. Arrange the accounts according to assets, liabilities, capital, income,
and expenses
3. Income Statement
4. Balance Sheet
Transcribed Image Text:The trial balance of Mabilis Repair Shop appears below the end of its calendar year: MABILIS REPAIR SHOP Trial Balance December 31, 2020 Debit Credit Cash on Hand 10,000 25,000 P Accounts Receivable Estimated Uncollectible Accounts 750 Notes Receivable 7,000 30,000 Shop Equipment Accumulated Depreciation – Shop Equipment Furniture and Fixture 2,000 8,000 Accumulated Depreciation - Furniture and Fixture Accounts Payable Notes Payable Leynes, Capital Leynes, Drawing Service Income Sa Rent Expense Supplies Expense 5,00 11,000 12,000 44,750 1,000 30,000 8,000 8,000 4,000 1,500 3,000 P 105,500 Expense Taxes and Licenses Light and Water Expense Total P 105,500 Additional Infommation: 1. Unpaid taxes, P600. 2. Accrued salaries, P3,000 3. Accrued interest on notes payable, P200. 4. Unpaid light and water, P500. 5. Supplies on hand, P1,000. Bad debts expense is estimated to be 5% of Accounts Receivable. 6. Required: 1. Prepare the adjusting entries. 2. Prepare a 10-column worksheet. Arrange the accounts according to assets, liabilities, capital, income, and expenses 3. Income Statement 4. Balance Sheet
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 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