Question

In: Accounting

On January 31, 2019, the general ledger of Palmer Company showed the following account balances. ACCOUNTS...

On January 31, 2019, the general ledger of Palmer Company showed the following account balances.

ACCOUNTS
Cash 61,400
Accounts Receivable 20,900
Supplies 7,400
Prepaid Insurance 6,600
Equipment 89,900
Accum. Depr.—Equip. 0
Accounts Payable 15,100
Sadie Palmer, Capital 80,350
Fees Income 109,000
Depreciation Exp.—Equip. 0
Insurance Expense 0
Rent Expense 9,000
Salaries Expense 9,250
Supplies Expense 0


Additional information:

  1. Supplies used during January totaled $4,900.
  2. Expired insurance totaled $1,650.
  3. Depreciation expense for the month was $1,425.

Complete the worksheet through the Adjusted Trial Balance section. Assume that every account has the normal debit or credit balance. The worksheet covers the month of January.

Solutions

Expert Solution

Unadjusted Trial balance Adjustments Adjusted trial balance
Dr Cr Dr Cr Dr Cr
Cash $         61,400.00 $   61,400.00
Accounts Receivable $         20,900.00 $   20,900.00
Supplies $           7,400.00 $                  4,900.00 $     2,500.00
Prepaid Insurance $           6,600.00 $                  1,650.00 $     4,950.00
Equipment $         89,900.00 $   89,900.00
Accum. Depr.—Equip. $                     -   $                  1,425.00 $       1,425.00
Accounts Payable $    15,100.00 $   15,100.00
Sadie Palmer, Capital $    80,350.00 $   80,350.00
Fees Income $ 1,09,000.00 $1,09,000.00
Depreciation Exp.—Equip. $                     -   $          1,425.00 $     1,425.00
Insurance Expense $                     -   $          1,650.00 $     1,650.00
Rent Expense $           9,000.00 $     9,000.00
Salaries Expense $           9,250.00 $     9,250.00
Supplies Expense $                     -   $          4,900.00 $     4,900.00
Total $          2,04,450.00 $ 2,04,450.00 $          7,975.00 $                  7,975.00 $ 2,05,875.00 $ 2,05,875.00
For Supplies used credited supplies and debited supplies expenses
For expired insurance debited insurance expenses and credited prepaid insurance
For depreciation debited depreciation expenses and credited accumulated depreciation

ekkarill92 answered 3 years ago
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