3. Post daily to the Accounts Receivable Subsidiary Ledger and the Accounts Paya

Question

3. Post daily to the Accounts Receivable Subsidiary Ledger and the Accounts Payable Subsidiary Ledger. On December 31, post to the General Ledger. 4. Prepare an Unadjusted Trial Balance, using the worksheet. Complete the worksheet using the following adjustment information for December: a. Office supplies on hand on December 31 are $1,085. b. A physical count of inventory showed an ending inventory cost of $44,000 c. Recorded depreciation on equipment for the month, $4,200. d. Insurance expired during December is $300. e. Earned $1,750 worth of the unearned service revenue. 5. Journalize and post the adjusting entries.

Explanation / Answer

a. Balance Sheet:

b.The following entries will be passed in Jake Walters Capital A/c

1. For transferring the balance of withdrawal a/c

Jake Walters Capital A/c Dr. 122,000

Jake Walters Withdrawal A/c 122,000

2. For transfer of Net Income

Net Income A/c Dr. 211,963

Jake Walters Capital A/c 211,963

Note: Adjustment entries are correct.

Account Debit Credit Cash 161,613 Accounts Receivable 8,008 Inventory 44,000 Office Supplies 1,085 Prepaid Insurance 3,600 Equipment 265,967 Accumulated Depreciation (Equipment) 119,700 Accounts Payable 5,587 Unearned Service Revenue 1,250 Jake Walters Capital 357,736 Total 484,273 484,273

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