The balances in the ledger of Landscape Services as of December 31, 2016 before
ID: 2548675 • Letter: T
Question
The balances in the ledger of Landscape Services as of December 31, 2016 before adjustments are as follows:
Cash -debit
$ 14,500
Tim Welch, Capital - credit
$33,050
Supplies - debit
4,150
Tim Welch, Drawing - debit
2,900
Prepaid Insurance - debit
8,700
Service Revenue - credit
52,500
Equipment - debit
42,000
Salary Expense – debit
Supplies Expense
Depreciation Expense
Insurance Expense
26,600
0
0
0
Accumulated
Rent Expense - debit
5,000
Depreciation – credit
Salaries Payable
20,200
0
Miscellaneous Expense - debit
1,900
Adjustment data are as follows: supplies on hand, December 31, $1,000; insurance expired for December, $900; depreciation on equipment for December, $1,500; salaries accrued, December 31, $1,000.
(a)
Prepare a ten-column work sheet for Landscape Services for December 31 , 2016.
Part 2
On thOn the basis of the adjustment data in the work sheet, journalize the adjusting entries.
Part 3
On thOn the basis of the data in the work sheet, journalize the closing entries.
Cash -debit
$ 14,500
Tim Welch, Capital - credit
$33,050
Supplies - debit
4,150
Tim Welch, Drawing - debit
2,900
Prepaid Insurance - debit
8,700
Service Revenue - credit
52,500
Equipment - debit
42,000
Salary Expense – debit
Supplies Expense
Depreciation Expense
Insurance Expense
26,600
0
0
0
Accumulated
Rent Expense - debit
5,000
Depreciation – credit
Salaries Payable
20,200
0
Miscellaneous Expense - debit
1,900
Explanation / Answer
WORKSHEET 31-Dec-18 Account Names Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 14,500 14,500 14,500 Supplies 4,150 3150 1,000 1,000 Prepaid insurance 8,700 900 7800 7800 Equipment 42,000 42,000 42,000 Accumulated Dep 20200 1500 21700 21700 Salaries payable 0 1,000 1,000 1,000 Capital 33,050 33,050 33,050 Drawings 2900 2900 2900 Service revenue 52500 52,500 52500 Salaries expense 26600 1,000 27600 27600 Supplies expense 3150 3150 3150 Depreciation expense 1500 1,500 1500 Insurance expense 900 900 900 Rent expense 5,000 5,000 5,000 Misc. expense 1,900 1,900 1,900 Total 105,750 105750 6,550 6,550 108,250 108,250 40,050 52,500 68,200 55,750 Add: Net income 12,450 12,450 52,500 52,500 68,200 6,820 Adjusting entries 1. Supplies expense Dr. 3150 Supplies 3150 2. Insurancce Expense Dr. 900 Prepaid insurance 900 3. Depreciation Expense Dr. 1500 Accumulated depreciation 1500 4. Salaries expense dr. 1000 salaries payable 1000 Closing entries 1. Service revenue Dr. 52500 Income Summary 52500 2. Income Summary 40050 salaries expense 27600 Supplies expense 3150 Depreciation expense 1500 Insurance expense 900 Rent expense 5000 Misc. expense 1900 3. Income Summary Dr. 12450 Tim Welch Capital 12450 4. Tim Welch Capital Dr. 2900 Tim welch Drawings 2900
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