The trial balance of Johnson Travel at December 31,2005 follows;along with the d
ID: 2611207 • Letter: T
Question
The trial balance of Johnson Travel at December 31,2005 follows;along with the data for the month end adjustments.
DEBT CREDIT
Cash 1300
A/R 6600
Supplies 2300
Prepaid rent 1600
Furniture 36000
Accumulated depreciation(furniture) 4800
A/P 4500
Unearned service revenue 600
Capital 26000
Withdrawals 29000
Service Revenue 106000
Deprecation expense 2300
Salary Expense 39900
Rent expense 20000
Supplies expense 2900
TOTAL 141900 141900
Questions: What adjusting entry will Johson make on this transaction ?
a) Depreciation on furniture for the month.The estimated useful life of the furniture is 2 years.
b)On December 1,the bussiness moved into a new office and paid the first 4 months rent as advance.Prepaid rent expense during the month.
c)Service Revenue of 300 dollars were earned during the month from the service performed for clients who had paid in advance.
d)The salary expense is 245 dollars per day-and the business pays employees every Friday(weekly payroll is from Monday to Friday).This year December 31 falls on a Monday.
1- What is Total Expense ?
2-Total Liabilities ?
3-The A/P in the Adjusted Trial Balance is ?
4-The total debit or credit amount in the Adjusted Trial Balance ?
5-Which of the following is the closing entry for withdrawals on Dec 31 ?
6-Which of the following is closing entry for revenue on Dec 31 ?
7- The next capital balance in the post closing trial balance is ?
8-How much is the Debit/Credit amount in the Post-closing trial balance ?
9-How much is the revenue balance in the post closing trial balance ?
10-The current assets in the classified balance sheet is ?
11-The total assets is ?
Explanation / Answer
As per policy, only 4 parts of a question are allowed to answer, so answering Adjusting entries & 1-4 :
Adjusting Journal Entries :
1) Total expenses :
2: Total Liabilities :
3-The A/P in the Adjusted Trial Balance is $4500.
4-The total debit or credit amount in the Adjusted Trial Balance is as follows:
Date Accounts Titles Debit $ Credit $ Dec 31 2005 Dep 1500 Acc Dep - furniture 1500 Rent expense 400 prepaid rent 400 Unearned Service Rev 300 Service Revenue 300 Salary expense 245 Salary payable 245 (one day salary - monday)Related Questions
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