1. record 2007 adjusting entry 2. recrord 2007 closing entry st. denis inc kept

Question

1. record 2007 adjusting entry 2. recrord 2007 closing entry st. denis inc kept record without accountant, after mucheffort outside accountant prepared unadjusted trial balance as ofthe end of annual accounting peiord dec. 31, 2007 accounttitle                                                     debit                               credit cash                                                            60000 accountsreceivable                                     13000 supplies                                                          800 prepaidinsurance                                         1000 servicetrucks                                              20000 accumulated depreciation, servicetrucks                                                    12000 otherassets                                                 11200 accountspayable                                                                                       3000 income taxpayable                                                                                     notes payable(3yrs; 10% interest due eachdec31)                                     20000 contributed capital(5000 sharesoutstanding)                                              28200 retainedearnings                                                                                          7500 servicerevenue                                                                                          77000 remaining expense(not detailed;exclude income tax) 41700                                                                      ------------                          ----------                                                                      $147,700                               $147,700 data not yet recorded at dec 31, 2007 a. supplies counted on dec 31, 2007, reflected $300 remainingon hand to be used in 2008 b. insurance expired during 2007; $500 c. depreciation expense for 2007; $4000 d. wages earned by employees not yet paid on dec. 31, 2007;$900 e. income tax expense was $7350 1. record 2007 adjusting entry 2. recrord 2007 closing entry st. denis inc kept record without accountant, after mucheffort outside accountant prepared unadjusted trial balance as ofthe end of annual accounting peiord dec. 31, 2007 accounttitle                                                     debit                               credit cash                                                            60000 accountsreceivable                                     13000 supplies                                                          800 prepaidinsurance                                         1000 servicetrucks                                              20000 accumulated depreciation, servicetrucks                                                    12000 otherassets                                                 11200 accountspayable                                                                                       3000 income taxpayable                                                                                     notes payable(3yrs; 10% interest due eachdec31)                                     20000 contributed capital(5000 sharesoutstanding)                                              28200 retainedearnings                                                                                          7500 servicerevenue                                                                                          77000 remaining expense(not detailed;exclude income tax) 41700                                                                      ------------                          ----------                                                                      $147,700                               $147,700 data not yet recorded at dec 31, 2007 a. supplies counted on dec 31, 2007, reflected $300 remainingon hand to be used in 2008 b. insurance expired during 2007; $500 c. depreciation expense for 2007; $4000 d. wages earned by employees not yet paid on dec. 31, 2007;$900 e. income tax expense was $7350

Explanation / Answer

( A.)

Dr.

Cr.

1

500

500

2

500

500

3

4000

4000

4

900

900

5

7350

7350

(B.)

Closing Entries

1

54950

500

4000

500

900

7350

41700

2

77000

77000

3

22050

22050

( A.)

Adjusting entry:

Dr.

Cr.

1

Supplies Expense

500

          Supplies

500

2

Insurance Expense

500

         PrepaidInsurance

500

3

Depreciation Expense

4000

       AccumulatedDepreciation

4000

4

Wages expense

900

          Wages Payable

900

5

Income tax Expense

7350

            Income tax payable

7350

(B.)

Closing Entries

1

Income summary

54950

          Supplies Expenses

500

          Depreciation Expense

4000

          Insurance Expense

500

          WagesExpense

900

          Income tax expense

7350

          Otherexpense

41700

2

Service Revenue

77000

          Income Summary

77000

3

Income summary

22050

          RetainedEarnings

22050

Note: Interest Expense on Notes Payable is includedin Other         Expenses. Given in question

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