P4-4B Allesnik Advertising Agency was founded in January 2017. Presented here ar
ID: 2611898 • Letter: P
Question
P4-4B Allesnik Advertising Agency was founded in January 2017. Presented here are both the adjusted and unadjusted trial balances as of December 31, 2017.
ALLESNIK ADVERTISING AGENCY
Trial Balance
December 31, 2017
Unadjusted
Adjusted
Cash
Dr.
Cr.
Dr.
Cr.
$
11,000
$
11,000
Accounts Receivable
16,000
19,000
Supplies
9,400
7,000
Prepaid Insurance
3,350
1,790
Equipment
60,000
60,000
Accumulated Depreciation—
Equipment
$
25,000
$
30,000
Notes Payable
8,000
8,000
Accounts Payable
2,000
2,000
Interest Payable
0
560
Unearned Service Revenue
5,000
3,100
Salaries and Wages Payable
0
820
Common Stock
20,000
20,000
Retained Earnings
5,500
5,500
Dividends
10,000
10,000
Service Revenue
57,600
62,500
Salaries and Wages Expense
9,000
9,820
Insurance Expense
1,560
Interest Expense
560
Depreciation Expense
5,000
Supplies Expense
2,400
Rent Expense
4,350
4,350
$
123,100
$
123,100
$
132,480
$
132,480
Instructions
(a)Journalize the annual adjusting entries that were made.
(b) Prepare an income statement and a retained earnings statement for the year ended December 31, and a classified balance sheet at December 31.
Unadjusted
Adjusted
Cash
Dr.
Cr.
Dr.
Cr.
$
11,000
$
11,000
Accounts Receivable
16,000
19,000
Supplies
9,400
7,000
Prepaid Insurance
3,350
1,790
Equipment
60,000
60,000
Accumulated Depreciation—
Equipment
$
25,000
$
30,000
Notes Payable
8,000
8,000
Accounts Payable
2,000
2,000
Interest Payable
0
560
Unearned Service Revenue
5,000
3,100
Salaries and Wages Payable
0
820
Common Stock
20,000
20,000
Retained Earnings
5,500
5,500
Dividends
10,000
10,000
Service Revenue
57,600
62,500
Salaries and Wages Expense
9,000
9,820
Insurance Expense
1,560
Interest Expense
560
Depreciation Expense
5,000
Supplies Expense
2,400
Rent Expense
4,350
4,350
$
123,100
$
123,100
$
132,480
$
132,480
Explanation / Answer
a) Adjustment Journal Entries :
b) Income statement :
Balance Sheet as on Dec 31,
add: Net Income 38810
Date Accounts Titles Debit $ Credit $ Dec 31 AR 3000 Sale Rev 3000 Supplies exp 2400 Supplies 2400 Insurance exp. 1560 prepaid Insurance 1560 Depreciation 5000 Acc Dep - Eq 5000 Interest Exp 560 Interest payable 560 Unearned Service Revenue 1900 Service Revenue 1900 salary and wages exp 820 Salary and wages payable 820Related Questions
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