Adjusting entries seperate journal Paper Assignment #4 Problem 3-4A (15 points)
ID: 2437268 • Letter: A
Question
Adjusting entries seperate journal Paper Assignment #4 Problem 3-4A (15 points) Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The trial balance as of December 31, 2018, appears below. December 31 is the company's fiscal year-endd Debits Credits Cash Accounts Receivable Supplies Prepaid Rent Equipment 10,300 9,500 2,000 7,200 90,000 S12,000 7,700 Accounts Payable Salaries Payable Interest Payable Utilities Payable Notes Payable Common Stock Retained Earnings Service Revenue Salaries Expense Interest Expense Rent Expense Supplies Expense Utilities Expense Depreciation Expense 20,000 45,000 19,000 42,200 24,500 2,400 Totals S145.900 $145,900 Information necessary to prepare the year-end adjusting entries appears below a. Depreciation of equipment for the year is $6,000. b. Accrued salaries at year-end should be $2,100. c. Crimson Tide borrows $20,000 on September 1, 2018. The principal is due to be repaid in four years. Interest is payable each August 31 at an annual rate of 12% 20.553,2 ou d. Unused supplies at 2:00 total S700, Crimson Tide debits supplies at the time supplies are e. Crimson Tide opens a second studio by paying for one year ofrent in advance on April 1, 2018, for $7,200 ($600 per month) debiting Prepaid Rent. f. Unpaid utilities for December total $200. Required: Record the necessary adjusting entries on December 31, 2018.
Explanation / Answer
Crimson Tide Music Company Date Particular Amount (Dr) Amount (Cr) a) Depreciation $ 6,000.00 To Accumulated Depreciation $ 6,000.00 (Being amount of Depreciation) b) Salary $ 2,100.00 To Salary Payable $ 2,100.00 (Being amount of Accrued Salaries) c) Interest $ 800.00 To Interest Payable $ 3,950.00 (Being amount of Interest Payable($20000*12%*4/12) d) Supplies Expenses($2000-$700) $ 1,300.00 To Supplies $ 1,300.00 (Being amount of Supplies expenses) e) Rent=($600*9) $ 5,400.00 To Prepaid Rent $ 5,400.00 (Being amount of Rent Expnses for 9 months) f) Utilities Expenses $ 200.00 To Utilities Expenses Payable $ 200.00 (Being amount of Utilites Expenses) Prepaid Rent Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance $ 7,200.00 31-Dec Rent $ 5,400.00 1,800.00 Rent Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance $ - 31-Dec Rent $ 5,400.00 5,400.00 Salary Expenses Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance $ 24,500.00 31-Dec Salary Payable $ 2,100.00 $ 26,600.00 Salary Payable Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance $ - 31-Dec Salary $ 2,100.00 $ 2,100.00 Utiltites Date Particular Amt (DR) Amount (Cr) Balance 1-Dec Opening Balance $ 2,400.00 31-Dec Utilties Expenses Payable $ 200.00 $ 2,600.00 Utitlites Expenses Payable Date Particular Amt (DR) Amount (Cr) Balance 31-Dec Utitlities Expenses $ 200.00 $ 200.00 Depreciation Expense-Office Equipment Date Particular Amt (DR) Amount (Cr) Balance 31-Dec Accumulated Depreciation $ 6,000.00 $ 6,000.00 Accumulated Depreciation Expense-Office Equipment Date Particular Amt (DR) Amount (Cr) Balance 1-Dec To Balance b/d 12000 31-Dec Depreciation- Equipment $ - $ 6,000.00 $ 18,000.00 Interest Expenses Date Particular Amt (DR) Amount (Cr) Balance 31-Dec Interest Payable $ 800.00 $ 800.00 Interest Payable Date Particular Amt (DR) Amount (Cr) Balance 31-Dec Interest $ 800.00 $ 800.00 Supplies Expenses Date Particular Amt (DR) Amount (Cr) Balance 31-Dec Supplies $ 1,300.00 $ 1,300.00 Supplies Date Particular Amt (DR) Amount (Cr) Balance 1-Dec 2000 31-Dec Supplies Expenses $ 1,300.00 $ 700.00 Crimson Tide Music Adjusted Trial Balance Account Title & Explaination Amt (Dr) Amt (Cr) Cash $ 10,300.00 Accounts Receivable $ 9,500.00 Computer Supplies $ 700.00 Prepaid Rent $ 1,800.00 Equipment $ 90,000.00 Accumulated Depreciation-Office Equipment $ 18,000.00 Accounts Payable $ 7,700.00 Salary Payable $ 2,100.00 Utilties Payable $ 200.00 Interest Payable $ 800.00 Notes Payable $ 20,000.00 Common Stock $ 45,000.00 Retained Earnings $ 19,000.00 Service Revenue $ 42,200.00 Salaries Expense $ 26,600.00 Interest Expense $ 800.00 Rent Expenses $ 5,400.00 Supplies Expense $ 1,300.00 Utilties expense $ 2,600.00 Depreciation Expenses $ 6,000.00 Total $ 1,55,000.00 $ 1,55,000.00 Crimson Tide Music Company Income Statement Service Revenue $ 42,200.00 Expenses Salaries Expense $ 26,600.00 Interest Expense $ 800.00 Rent Expenses $ 5,400.00 Supplies Expense $ 1,300.00 Utilties expense $ 2,600.00 Depreciation Expenses $ 6,000.00 Total Expenses $ 42,700.00 Net Loss($42200-$42700) $ -500.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.