ACCT 220 Week 2 Homework Problems
ACCT 220 Week 2 Homework Problems Click Link Below To Buy: https://hwaid.com/shop/acct-220-week-2-homework-problems/ Contact Us: [email protected] ACCT 220 Week 2 Homework Problems ACCT 220 Week 2 Homework Problem Review the unadjusted trial balance below and prepare adjusting journal entries to record the various described items below. Record in the space provided at the bottom of this spreadsheet. After completing journal entries, complete the adjusted trial balance below. Lastly complete the income statement, balance sheet and statement of retained earnings. The balance sheet must balance. The accounting equation is Assets = Liabilities + Equity. Baltimore Corporation Unadjusted Trial Balance January 31, 2016 Debits Credits Cash $ 37,500 $ – Accounts receivable 12,410 – Prepaid insurance 2,400 – Supplies inventory 7,113 – Equipment 35,000 – Accumulated depreciation – 10,000 Accounts payable – 7,569 Salaries payable – – Interest payable – – Unearned revenue – 8,500 Loan payable – 11,500 Capital stock – 25,000 Retained earnings, Jan. 1 – 15,457 Revenues – 43,995 Depreciation expense – – Interest expense – – Insurance expense – – Office expense 2,500 – Rent expense 13,000 – Salary expense 12,098 – Supplies expense – – Utilities expense – – $ 122,021 $ 122,021 1 Belair Corporation’s equipment had an original life of 140 months, and the straight-line depreciation method is used. As of January 1, the equipment was 40 months old. The equipment will be worthless at the end of its useful life. 2 As of the end of the month, Belair Corporation has provided services to customers for which the earnings process is complete. Formal billings are normally sent out on the first day of each month for the prior month’s work. January’s unbilled work is $25,000. 3 Utilities used during January, for which bills will soon be forthcoming from providers, are estimated at $1,500. 4 A review of supplies on hand at the end of the month revealed items costing $3,500. 5 The $2,400 balance in prepaid insurance was for a 6-month policy running from January 1 to June 30. 6 The unearned revenue was collected in December of 2014. 60% of that amount was actually earned in January, with the remainder to be earned in February. 7 The loan accrues interest at 1% per month. No interest was paid in January. 8 At month end, salaries of $2,120 have been earned but not paid. JE # ACCOUNT DEBIT CREDIT 1 2 3 4 5 6 7 8 Baltimore Corporation Adjusted Trial Balance January 31, 2016 Debits Credits Cash Accounts receivable Prepaid insurance Supplies inventory Equipment Accumulated depreciation Accounts payable Salaries payable Interest payable Unearned revenue Loan payable Capital stock Retained earnings, Jan. 1 Revenues Depreciation expense Insurance expense Interest expense Office expense Rent expense Salary expense Supplies expense Utilities expense $ – $ – Baltimore Corporation Income Statement For the month ended January 31, 2016 Baltimore Corporation Balance Sheet January 31, 2016 Baltimore Corporation Statement of Retained Earnings As of January 31, 2015
