WORK SHEET, ADJUSTING, CLOSING, AND REVERSING ENTRIES The trial balance for Darb
ID: 2534065 • Letter: W
Question
WORK SHEET, ADJUSTING, CLOSING, AND REVERSING ENTRIES The trial balance for Darby Kite Store as of December 31, 20-1, is shown on page 610. At the end of the year, the following adjustments need to be made: a and b) Merchandise inventory as of December 31, $23,600. (c) Unused supplies on hand, $1,050. (d) Insurance expired, $250 (e) Depreciation expense for the year, $400. (f) Wages earned but not paid (Wages Payable), $360 (g) Unearned revenue on December 31, 20-1, $500. REQUIRED 1. Prepare a work sheet. 2. Prepare adjusting entries 3. Prepare closing entries. 4. Prepare a post-closing trial balance. 5. Prepare reversing entry(ies).Explanation / Answer
Solution:
1) Preparing a Worksheet:
2) Preparing Adjusting Entries:
3) Preparing the Closing Entries:
4) Preparing the Post Closing Trial Balance;
Accounts Unadjusted Trial Balance Adjustments Adjusted TB Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 11,700 11,700 11,700 Accounts Receivables 11,200 11,200 11,200 Merchadise Inventory 25,000 1,400 23,600 23,600 Supplies 1,200 150 1,050 1,050 Prepaid Insurance 800 250 550 550 Equipment 5,400 5,400 5,400 Accumulated Depreciation - Equipment 800 400 1,200 1,200 Accounts Payable 7,100 7,100 7,100 Wages Payable 360 360 360 Sales Tax Payable 250 250 250 Unearned Revenue 3,000 2,500 500 500 M.D Akins Capital 50,000 50,000 50,000 M.D Akins Drawing 10,500 10,500 10,500 Income Summary 4,590 Sales 55,490 2,500 57,990 57,990 Sales Returns and Allowances 1,450 1,450 1,450 Purchases 34,500 1,400 35,900 35,900 Purchases Returns and Allowances 1,100 1,100 1,100 Purchases Discount 630 630 630 Frieght In 360 360 360 Wages Expense 10,880 360 11,240 11,240 Advertising Expense 740 740 740 Supplies Expense 150 150 150 Phone Expense 1,100 1,100 1,100 Utilities Expense 2,300 2,300 2,300 Insurance Expense 250 250 250 0 Depreciation Expense - Equipment 400 400 400 0 Miscellaneous Expense 320 320 320 Interest Expense 920 920 920 Totals $118,370 $118,370 $5,060 $5,060 $119,130 $119,130 $55,130 $59,720 $64,000 $64,000 Net Income $0 $4,590Related Questions
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