Recent Feedback
The following unadjusted trial balance is for Adams Construction Co. as of the end of its 2005 fiscalyear. The June 30, 2004, credit balance of the owner's capital account was $52,660, and the ownerinvested $25,000 cash in the company during the 2005 fiscal year.101126128167168201203208210213251301302401612623633637640652683684690CashSuppliesPrepaid insuranceEquipmentAccumulated depreciation-EquipmentAccounts payableInterest payableRent payableWages payableProperty taxes payableLong-term notes payableS. Adams, CapitalS. Adams, WithdrawalsConstruction fees earnedDepreciation expense-EquipmentWages expenseInterest expenseInsurance expenseRent expenseSupplies expenseProperty taxes expenseRepairs expenseUtilities expenseTotals$ 17,5008,9006,200131,00030,000045,8602,640013,20004,6002,8104,000$ 266,710$ 25,2505,800000024,00077,660134,000$ 266,710Required1. Prepare a 10-column work sheet for fiscal year 2005, starting with the unadjusted trial balanceand including adjustments based on these additional facts:a. The supplies available at the end of fiscal year 2005 had a cost of $3,200.b. The cost of expired insurance for the fiscal year is $3,900.c. Annual depreciation on equipment is $8,500.d. The June utilities expense of $550 is not included in the unadjusted trial balance because thebill arrived after the trial balance was prepared. The $550 amount owed needs to be recorded.e. The company's employees have earned $1,600 of accrued wages at fiscal year-end.f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $200.g. Additional property taxes of $900 have been assessed for this fiscal year but have not beenpaid or recorded in the accounts.h. The long-term note payable bears interest at 1% per month. The unadjusted Interest Expenseaccount equals the amount paid for the first 11 months of the 2005 fiscal year. The $240 accruedinterest for June has not yet been paid or recorded. (Note that the company is requiredto make a $5,000 payment toward the note payable during the 2006 fiscal year.)2. Use the work sheet to enter the adjusting and closing entries; then journalize them.3. Prepare the income statement and the statement of owner's equity for the year ended June 30 andthe classified balance sheet at June 30, 2005.Analysis Component4. Analyze the following separate errors and describe how each would affect the 10-column worksheet. Explain whether the error is likely to be discovered in completing the work sheet and, ifnot, the effect of the error on the financial statements.a. Assume that the adjustment for supplies used consisted of a credit to Supplies for $3,200 anda debit for $3,200 to Supplies Expense.b. When the adjusted trial balance in the work sheet is completed, the $17,500 Cash balance isincorrectly entered in the Credit column.
The following unadjusted trial balance is for Adams Construction Co. as of the end of its 2005 fiscal
year. The June 30, 2004, credit balance of the owner's capital account was $52,660, and the owner
invested $25,000 cash in the company during the 2005 fiscal year.
101
126
128
167
168
201
203
208
210
213
251
301
302
401
612
623
633
637
640
652
683
684
690
Cash
Supplies
Prepaid insurance
Equipment
Accumulated depreciation-Equipment
Accounts payable
Interest payable
Rent payable
Wages payable
Property taxes payable
Long-term notes payable
S. Adams, Capital
S. Adams, Withdrawals
Construction fees earned
Depreciation expense-Equipment
Wages expense
Interest expense
Insurance expense
Rent expense
Supplies expense
Property taxes expense
Repairs expense
Utilities expense
Totals
$ 17,500
8,900
6,200
131,000
30,000
0
45,860
2,640
13,200
4,600
2,810
4,000
$ 266,710
$ 25,250
5,800
24,000
77,660
134,000
Required
1. Prepare a 10-column work sheet for fiscal year 2005, starting with the unadjusted trial balance
and including adjustments based on these additional facts:
a. The supplies available at the end of fiscal year 2005 had a cost of $3,200.
b. The cost of expired insurance for the fiscal year is $3,900.
c. Annual depreciation on equipment is $8,500.
d. The June utilities expense of $550 is not included in the unadjusted trial balance because the
bill arrived after the trial balance was prepared. The $550 amount owed needs to be recorded.
e. The company's employees have earned $1,600 of accrued wages at fiscal year-end.
f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $200.
g. Additional property taxes of $900 have been assessed for this fiscal year but have not been
paid or recorded in the accounts.
h. The long-term note payable bears interest at 1% per month. The unadjusted Interest Expense
account equals the amount paid for the first 11 months of the 2005 fiscal year. The $240 accrued
interest for June has not yet been paid or recorded. (Note that the company is required
to make a $5,000 payment toward the note payable during the 2006 fiscal year.)
2. Use the work sheet to enter the adjusting and closing entries; then journalize them.
3. Prepare the income statement and the statement of owner's equity for the year ended June 30 and
the classified balance sheet at June 30, 2005.
Analysis Component
4. Analyze the following separate errors and describe how each would affect the 10-column work
sheet. Explain whether the error is likely to be discovered in completing the work sheet and, if
not, the effect of the error on the financial statements.
a. Assume that the adjustment for supplies used consisted of a credit to Supplies for $3,200 and
a debit for $3,200 to Supplies Expense.
b. When the adjusted trial balance in the work sheet is completed, the $17,500 Cash balance is
incorrectly entered in the Credit column.
Hello ericcarter and welcome to Just Answer
Please post your full question so that we can help
It would also help if you advise the name of the book you are using: Title,a uthor's name, and edition
Thank you
This is all the questions asked, and all information is given to me
Hello
Please click here for the solution
Regards,
Hello again eric :)
Yes, that is the full question, when I posted my message you had just typed the first line so the question was not clear. I have your book by the way (Are you using the 17th edition?)
If yes, then for future posts you do not need to type the problems, just tell me the question number and I will post the solution.
P.S. If you like my work, please feel free to direct your future posts to me specifically by typing "For BusinessTutor" at the beginning of your post. Should you choose to do this, please try to allow me 48 hours before the deadline. If you need to meet me online fo a timed assignment, please advise me of the date and time (EST) you want me to meet you here and I will. Thank you
The following six-column table for Bullseye Ranges includes the unadjusted trial balance as ofDecember 31, 2005.Problem 4-6AAPreparing adjusting, reversing, andnext period entriesP4 BULLSEYE RANGESDecember 31, 2005Unadjusted AdjustedTrial TrialAccount Title Balance Adjustments BalanceDr. Cr. Dr. Cr. Dr. Cr.Cash . . . . . . . . . . . . . . . . . . . . . $ 13,000Accounts receivable . . . . . . . . . . 0Supplies . . . . . . . . . . . . . . . . . . 5,500Equipment . . . . . . . . . . . . . . . . 130,000Accumulated depreciation—Equipment . . . . . . . . . . . . . . . $ 25,000Interest payable . . . . . . . . . . . . . 0Salaries payable . . . . . . . . . . . . . 0Unearned member fees . . . . . . . 14,000Notes payable . . . . . . . . . . . . . . 50,000T. Allen, Capital . . . . . . . . . . . . . 58,250T. Allen, Withdrawals . . . . . . . . . 20,000Member fees earned . . . . . . . . . 53,000Depreciation expense—Equipment . . . . . . . . . . . . . . . 0Salaries expense . . . . . . . . . . . . 28,000Interest expense . . . . . . . . . . . . 3,750Supplies expense . . . . . . . . . . . . 0Totals . . . . . . . . . . . . . . . . . . . . $200,250 $200,250Required1. Complete the six-column table by entering adjustments that reflect the following information:a. As of December 31, 2005, employees had earned $900 of unpaid and unrecorded salaries. Thenext payday is January 4, at which time $1,600 of salaries will be paid.b. The cost of supplies still available at December 31, 2005, is $2,700.c. The notes payable requires an interest payment to be made every three months. The amountof unrecorded accrued interest at December 31, 2005, is $1,250. The next interest payment,at an amount of $1,500, is due on January 15, 2006.d. Analysis of the unearned member fees account shows $5,600 remaining unearned at December31, 2005.e. In addition to the member fees included in the revenue account balance, the company has earnedanother $9,100 in unrecorded fees that will be collected on January 31, 2006. The companyis also expected to collect $8,000 on that same day for new fees earned in January 2006.f. Depreciation expense for the year is $12,500.2. Use the work sheet to enter the adjusting and closing entries; then journalize them.3. Prepare the income statement and the statement of owner’s equity for the year ended June 30 andthe classified balance sheet at June 30, 2005.Analysis Component4. Analyze the following separate errors and describe how each would affect the 10-column worksheet. Explain whether the error is likely to be discovered in completing the work sheet and, ifnot, the effect of the error on the financial statements.a. Assume that the adjustment for supplies used consisted of a credit to Supplies for $3,200 anda debit for $3,200 to Supplies Expense.b. When the adjusted trial balance in the work sheet is completed, the $17,500 Cash balance isincorrectly entered in the Credit column.166 Chapter 4 Completing the Accounting CycleCheck (3) Total assets, $120,250;current liabilities, $14,290; Net income,$39,300Check (1) Adjusted trial balancetotals, $224,000Larson-Wild-Chiappetta:Fundamental AccountingPrinciples, SeventeenthEdition4. Completing theAccounting CycleText © The McGraw-HillCompanies, 2004Problem 4-2BApplying the accounting cycleC1 C2 P2 P3On July 1, 2005, Lucinda Fogle created a new self-storage business, KeepSafe Co. The followingtransactions occurred during the company’s first month:July 1 Fogle invested $20,000 cash and buildings worth $120,000 in the business.2 Rented equipment by paying $1,800 cash for the first month’s (July) rent.5 Purchased $2,300 of office supplies for cash.10 Paid $5,400 cash for the premium on a 12-month insurance policy. Coverage begins onJuly 11.14 Paid an employee $900 cash for two weeks’ salary earned.24 Collected $8,800 cash for storage fees from customers.28 Paid another $900 cash for two weeks’ salary earned by an employee.29 Paid $850 cash for minor repairs to a leaking roof.30 Paid $300 cash for this month’s telephone bill.31 Fogle withdrew $1,600 cash for personal use.The company’s chart of accounts follows:101 Cash 401 Storage Fees Earned106 Accounts Receivable 606 Depreciation Expense—Buildings124 Office Supplies 622 Salaries Expense128 Prepaid Insurance 637 Insurance Expense173 Buildings 640 Rent Expense174 Accumulated Depreciation—Buildings 650 Office Supplies Expense209 Salaries Payable 684 Repairs Expense301 L. Fogle, Capital 688 Telephone Expense302 L. Fogle, Withdrawals 901 Income Summary2. Prepare journal entries for the adjustments entered in the six-column table for part 1.3. Prepare journal entries to reverse the effects of the adjusting entries that involve accruals.4. Prepare journal entries to record the cash payments and cash collections described for January.
ANY ANSWERS
Eric
I have posted the solution to Adam's company problem a long time ago, here it is again
Please note though that experts do not get paid unless you click the green Accept button.
THIS ANSWER IS LOCKED!You need to spend $3 to view this post. Add Funds to your account and buy credits.