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

Related Solutions

On January 1, 2019, the general ledger of a company includes the following account balances: Accounts...
On January 1, 2019, the general ledger of a company includes the following account balances: Accounts Debit Credit Cash $ 76,000 Accounts Receivable 47,000 Allowance for Uncollectible Accounts $ 7,000 Inventory 36,000 Building 76,000 Accumulated Depreciation 16,000 Land 206,000 Accounts Payable 26,000 Notes Payable (7%, due in 3 years) 42,000 Common Stock 106,000 Retained Earnings 244,000 Totals $ 441,000 $ 441,000 The company accounts for all inventory transactions using the perpetual FIFO method. Purchases and sales of inventory are recorded...
On January 1, 2020, the general ledger of a Company includes the following account balances: Accounts...
On January 1, 2020, the general ledger of a Company includes the following account balances: Accounts Debit Credit Cash $ 84,000 Accounts Receivable 53,000 Allowance for Uncollectible Accounts $ 5,000 Inventory 44,000 Building 84,000 Accumulated Depreciation 24,000 Land 214,000 Accounts Payable 34,000 Notes Payable (8%, due in 3 years) 48,000 Common Stock 114,000 Retained Earnings 254,000 Totals $ 479,000 $ 479,000 The $44,000 beginning balance of inventory consists of 400 units, each costing $110. During January 2020, the following transactions...
On January 1, 2018, the general ledger of a company includes the following account balances: Accounts...
On January 1, 2018, the general ledger of a company includes the following account balances: Accounts Debit Credit Cash $ 71,000 Accounts Receivable 41,000 Allowance for Uncollectible Accounts $ 5,000 Inventory 31,000 Building 71,000 Accumulated Depreciation 11,000 Land 201,000 Accounts Payable 21,000 Notes Payable (9%, due in 3 years) 34,000 Common Stock 101,000 Retained Earnings 243,000 Totals $ 415,000 $ 415,000 The company accounts for all inventory transactions using the perpetual FIFO method. Purchases and sales of inventory are recorded...
On January 1, 2018, the general ledger of a company includes the following account balances: Accounts...
On January 1, 2018, the general ledger of a company includes the following account balances: Accounts Debit Credit Cash $ 90,000 Accounts Receivable 60,000 Allowance for Uncollectible Accounts $ 5,000 Inventory 50,000 Building 90,000 Accumulated Depreciation 30,000 Land 220,000 Accounts Payable 40,000 Notes Payable (8%, due in 3 years) 57,000 Common Stock 120,000 Retained Earnings 258,000 Totals $ 510,000 $ 510,000 The company accounts for all inventory transactions using the perpetual FIFO method. Purchases and sales of inventory are recorded...
Account balances from the ledger of Crosby Company on December 31, 2019, are as follows: Accounts...
Account balances from the ledger of Crosby Company on December 31, 2019, are as follows: Accounts Payable .................................................................................. $   23,000 Accounts Receivable ............................................................................. 38,000 Accumulated Depreciation--Equipment .................................................   64,000 Allowance for Doubtful Accounts ........................................................... 2,000 Patent .................................................................................................... 8,400 Capital Stock, $10 par ........................................................................... 100,000 Cash ...................................................................................................... 60,260 Inventory ................................................................................................ 105,000 Sales Supplies Inventory ....................................................................... 900 Interest Expense .................................................................................... 6,600 Inventory, December 31, 2018 .............................................................. 104,850 Contributed Capital in Excess of Par Value ........................................... 15,000 Long-Term Note Receivable, 14% ......................................................... 12,000 Mortgage Payable,...
The balances of the ledger accounts for Oleman Services on January 31, 2019, and the information...
The balances of the ledger accounts for Oleman Services on January 31, 2019, and the information needed for adjustments are shown below.    Account Name Balance Cash $ 6,500 Accounts Receivable 3,500 Supplies 1,200 Prepaid Insurance 3,000 Equipment 7,500 Accumulated Depreciation–Equipment − Accounts Payable 3,400 Jeff Oleman, Capital 17,500 Jeff Oleman, Drawing 1,500 Fees Income 9,500 Advertising Expense 600 Rent Expense 1,200 Salaries Expense 5,000 Supplies Expense − Insurance Expense − Utilities Expense 400 Depreciation Expense–Equipment −    Adjustment information:...
The ledger of a company contained the following account balances on December 31: Accounts Payable $...
The ledger of a company contained the following account balances on December 31: Accounts Payable $ 15,200 Fees Income $ 190,000 Accounts Receivable 6,800 Supplies 5,200 Accumulated Depreciation 10,000 Prepaid Rent 66,000 Cash 92,000 Rent Expense 10,000 Depreciation Expense 10,000 Supplies Expense 9,200 Equipment 80,000 Teresa Davis, Capital 138,400 Teresa Davis, Drawing 58,000 Utilities Expense 16,400 All the accounts have normal balances. Prepare the December 31 closing entries.
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts...
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 101,500 Accounts Receivable 34,600 Inventory 152,300 Land 70,300 Buildings 123,000 Allowance for Uncollectible Accounts $ 2,100 Accumulated Depreciation 9,900 Accounts Payable 21,000 Bonds Payable 123,000 Discount on Bonds Payable 30,300 Common Stock 203,000 Retained Earnings 153,000 Totals $ 512,000 $ 512,000 During January 2021, the following transactions occurred: January 1 Borrowed $103,000 from Captive Credit Corporation. The installment note bears...
On January 1, 2018, the general ledger of TNT Fireworks includes the following account balances: Accounts...
On January 1, 2018, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit Cash $ 60,000 Accounts Receivable 27,600 Allowance for Uncollectible Accounts 3,500 Inventory 37,600 Notes Receivable (5%, due in 2 years) 27,600 Land 168,000 Accounts Payable 16,100 Common Stock 233,000 Retained Earning 68,200 Totals $ 320,800 $ 320,800 During January 2018, the following transactions occur: January 1. Purchase equipment for $20,800. The company estimates a residual value of $2,800 and a five-year service...
The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Accounts...
The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 4,450 Accounts Receivable 9,450 Supplies 3,450 Equipment 35,000    Accumulated Depreciation $ 7,800 Accounts Payable 5,800 Utilities Payable 6,800 Deferred Revenue 0 Common Stock 22,500 Retained Earnings 9,450 Totals $ 52,350 $ 52,350 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $19,500, and on account, $64,500. 2. March 13...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT