In: Accounting
Aubrae and Tylor Williamson began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, was as follows:
Furniture Refinishers, Inc. Trial Balance on January 1, 2020 |
|||||||
Account Titles | Debit | Credit | |||||
Cash | 5,000 | ||||||
Accounts receivable | 4,000 | ||||||
Supplies | 6,000 | ||||||
Small tools | 6,000 | ||||||
Equipment | |||||||
Accumulated depreciation (on equipment) | |||||||
Other noncurrent assets (not detailed to simplify) | 8,000 | ||||||
Accounts payable | 6,000 | ||||||
Dividends payable | |||||||
Notes payable | |||||||
Wages payable | |||||||
Interest payable | |||||||
Income taxes payable | |||||||
Unearned revenue | |||||||
Common stock (40,000 shares, $0.10 par value) | 4,000 | ||||||
Additional paid-in capital | 6,000 | ||||||
Retained earnings | 13,000 | ||||||
Service revenue | |||||||
Depreciation expense | |||||||
Wages expense | |||||||
Interest expense | |||||||
Income tax expense | |||||||
Miscellaneous expenses (not detailed to simplify) | |||||||
Totals | 29,000 | 29,000 | |||||
Transactions during 2020 follow:
Data for adjusting entries:
Entry No. | Account | Debit | Credit |
1 | Cash | $40,000.00 | |
Notes payable | $40,000.00 | ||
2 | Equipment | $19,000.00 | |
Cash | $19,000.00 | ||
3 | Cash | $5,000.00 | |
Common Stock | $1,000.00 | ||
Additional Paid in Capital | $4,000.00 | ||
4 | Cash | $86,000.00 | |
Account receivable | $62,000.00 | ||
Service Revenue | $1,48,000.00 | ||
5 | Wages Expense | $40,000.00 | |
Cash | $40,000.00 | ||
Miscellaneous expense | $12,000.00 | ||
Accounts Payable | $10,000.00 | ||
Cash | $2,000.00 | ||
6 | Small Tools | $5,000.00 | |
Cash | $5,000.00 | ||
7 | Cash | $12,000.00 | |
Account Receivable | $12,000.00 | ||
8 | Account Payable | $15,000.00 | |
Cash | $15,000.00 | ||
9 | Supplies | $24,000.00 | |
Accounts Payable | $24,000.00 | ||
10 | Cash | $3,000.00 | |
Deposit | $3,000.00 | ||
11 | Retained Earning | $15,000.00 | |
Dividend payable | $15,000.00 | ||
(on Dec 1) | |||
Dividend Payable | $15,000.00 | ||
Cash | $15,000.00 | ||
(on Dec 31) | |||
12 | Supplies | $8,000.00 | |
Small tools | $7,000.00 | ||
Miscellaneous expense | $15,000.00 | ||
13 | Depreciation Expense | $3,000.00 | |
Accumulated Depreciation | $3,000.00 | ||
14 | Interest Expense | $2,000.00 | |
Interest Payable | $2,000.00 | ||
($4000*10%*6/12) | |||
15 | Wages Expense | $6,000.00 | |
Wages Payable | $6,000.00 | ||
16 | Income Tax Expense | $6,000.00 | |
Income Taxes payable | $6,000.00 |