Question

Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; End-of-Period Spreadsheet.

The unadjusted trial balance of Recessive Interiors at January 31, 2018, the end of the year, follows:

Recessive Interiors Unadjusted Trial Balance January 31, 2018
		Debit Balances		Credit Balances
11	Cash	13,100
13	Supplies	8,000
14	Prepaid Insurance	7,500
16	Equipment	113,000
17	Accumulated Depreciation—Equipment			12,000
18	Trucks	90,000
19	Accumulated Depreciation—Trucks			27,100
21	Accounts Payable			4,500
31	Common Stock			30,000
32	Retained Earnings			96,400
33	Dividends	3,000
41	Service Revenue			155,000
51	Wages Expense	72,000
52	Rent Expense	7,600
53	Truck Expense	5,350
59	Miscellaneous Expense	5,450
		325,000		325,000

The following additional accounts from Recessive Interiors' chart of accounts should be used: Wages Payable, 22; Income Summary, 34; Depreciation Expense-Equipment, 54; Supplies Expense, 55; Depreciation Expense-Trucks, 56; Insurance Expense, 57.

The data needed to determine year-end adjustments are as follows:

Supplies on hand at January 31 are $2,850.

Insurance premiums expired during the year are $3,150.

Depreciation of equipment during the year is $5,250.

Depreciation of trucks during the year is $4,000.

Wages accrued but not paid at January 31 are $900.

1- Prepare an adjusted trial balance. List the accounts in order by type: Assets, Liabilities, Capital, Dividends, Revenue and Expenses. If an amount box does not require an entry, leave it blank.

Answer 1

The adjusted trial balance is as follows:

1. With the additional information of adjusting entries, the supplies on hand which was counted was to be deducted from the supplies information given in unadjusted trial balance to arrive at the supplies expense.

2. Depreciation expenses are to be added to the accumulated depreciation account and the expense is to be shown in a separate account.

3. Wages payable is to be accounted for, and the amount is also to be added to the wages expense.

Hope this is helpful!!