Principles of Accounting 1 Chapter 3 Homework Gordon Corporation is a rental car

Question

Principles of Accounting 1

Chapter 3 Homework

Gordon Corporation is a rental car company owned and operated by Jeff Gordon. On November 30, 2015, the end of the current year, Gordon Corporation’s accounting clerk prepared the unadjusted trial balance shown below.

Gordon Corporation

Trial Balance

November 30, 2015

Account                                                                                              Debit               Credit

Cash                                                                                                    25,000

Accounts Receivable                                                                          12,000

Prepaid Insurance                                                                               6,000

Supplies                                                                                               5,000

Land                                                                                                    100,000

Building                                                                                              50,000

Accumulated Depreciation-Building                                                                          10,000

Vehicles                                                                                              80,000

Accumulated Depreciation-Vehicles                                                                          20,000

Accounts Payable                                                                                                       8,000

Unearned Rent Revenue                                                                                             3,600

Capital Stock                                                                                                              160,000

Retained Earnings                                                                                                       65,000

Dividends                                                                                           6,500

Rental Revenue                                                                                                           63,500

Salaries and Wages Expense                                                               28,000

Utilities Expense                                                                                 15,000

Repairs Expense                                                                                  2,600

The data needed to determine year-end adjustments are as follows:

a. Unexpired prepaid insurance at November 30, $2,400.

b. Supplies used during the month, $2,000.

c. Accrued salaries and wages, $3,500.

d. Rent unearned at end of the month totaled $1,800.

e. Depreciation of vehicles during the year, $1,500.

f. Depreciation of the building during the year, $2,500.

Instructions

1. Journalize the adjusting entries for transactions (a) through (f). This will require additional accounts not listed above.

2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.

Explanation / Answer

1)

2)

Serial No. Account Title and explanation Debit($) Credit($) a Insurance expense 3600 Prepaid Insurance 3600 b Supplies expense 2000 Supplies 2000 c Salaries & wages expense 3500 Accrued salaries & wages 3500 d Unearned rent revenue 1800 Rent Revenue 1800 e Depreciation-vehicle 1500 Accumulated Depreciation-Vehicles 1500 f Depreciation-building 2500 Accumulated Depreciation-Building 2500

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