Answer to Question #234989 in Management for abo

Question

Cash and Cash Equivalent Br 20,000 Owners’ Capital 40,000

Notes Receivables 45,000 Retained Earnings 75,000

Office Supplies 12,000 Sales Revenues 640,000

Prepaid Insurance 72,000 Interest Income 12,000

Inventory (Average Cost) 24,000 Cost of Goods Sold 320,000

Fixed Assets 120,000 Selling Expenses 21,000

Accum. Depr- Fixed assets 36,000 Wages Expense 105,000

Unearned Rent (Liability) 56,000 Rent Expense 15,000

a. Prepare the necessary adjusting entries for the following items as not yet recorded on

Dec-31-2019:

i. The office supplies consumed during the year is Br 8,000

ii. The Unexpired part of insurance is only Br 26,000

iii. Br 30,000 is earned sales revenues from the unearned advance collection

iv. Salary and wages accrued as on 31-Dec-2019 amounts to be Br 18,000

v. Depreciation Expenses allocated for the year amounts to be Br 15,000

vi. There are accrued interest of Br 8,000 on the notes receivable

b. Prepare Balance Sheet & Income Statement after adjustments on Dec-31- 2019.

Answer 1

adjusting entries

a)

Deferred Expense

Insurance Expense 26,000

Prepaid Insurance 26,000

Deferred Expense

Supplies Expense 8,000

Supplies 8,000

Deferred Expense

Depreciation Expense- 15,000

Accum. Depr. 15,000

Deferred Revenue

Unearned Revenue 8,000

Fees Earned 8,000

Accrued Expense

Wages Expense 18,000

Wages Payable 18,000

Accrued Revenue

Accounts Receivable 30,000

Fees Earned 30,000

b)

J Company

Adjusted Trial Balance

December 31, 20--

Cash  20,000

Accounts Receivable 45,000 

Prepaid Insurance 72,000 

Supplies 12,000 

Fixed asset

Accumulated Depreciation-fixed asset 36,000

Accumulated Depreciation-Equip. 67,100

Accounts Payable 7,500

Salaries & Wages Payable 2,300

Unearned Revenue 2,000

Capital Stock   40,000

Retained Earnings 54,000

Dividends 8,000

Fees Earned 208,250

Salaries and Wages Expense 105,000

Utilities Expense 23,200

Advertising Expense 18,000

Repairs Expense 11,500

Depreciation Expense-Equipment 5,800

Depreciation Expense-Bldg 1,750

Miscellaneous Expense 4,050

Insurance Expense 2,900

Supplies Expense 1,550

Total Br 444,900 Br444,900