Question

In: Accounting

The unadjusted trial balance at November 30 is below: No. Account Name Debit Credit 101 Cash...

The unadjusted trial balance at November 30 is below:

No.	Account Name	Debit	Credit
101	Cash	$ 99,876
106	Accounts receivable	5,300
125	Supplies - inventory	10,000
128	Prepaid insurance	6,400
131	Prepaid rent	35,000
151	Office equipment	20,000
152	Accumulated depreciation - office equipment		$ 0
155	Computer equipment	15,000
156	Accumulated depreciation - computer equipment		0
201	Accounts payable		0
205	Wages payable		0
221	Unearned revenue		1,500
301	Common stock		150,000
315	Retained earnings		0
401	Service revenue		65,325
501	Depreciation expense - office equipment	0
503	Depreciation expense - computer equipment	0
515	Wages expense	22,000
517	Insurance expense	0
519	Rent expense	0
521	Supplies expense	0
523	Advertising expense	1,940
525	Mileage expense	704
595	Miscellaneous expense	605
	TOTALS	$ 216,825	$ 216,825

Clown Around had the following transactions and events in December 2019:

Dec.	2	Paid $1,050 for July 2019 through December 2019 print advertisements in a local magazine.
	3	Purchased $750 of additional supplies on credit. The terms of the account require payment in 30 days.
	5	Received $3,000 cash from receivables for bills sent out in November.
	10	Paid wages to part time clowns for six days of work at $200 per day.
	11	Notified by Hyatt Hotels that Clown Around's offer to provide entertainment at a gala in January for $9,500 was accepted. Hyatt sent an advance payment of $3,500.
	12	Interviewed and hired three new clowns to start work in January 2020 at $10 per hour.
	20	Performed at a company holiday party and received $5,500 cash.
	21	Performed at another company holiday party and sent a bill for services in the amount of $6,500.
22-26		Took the week off for the holidays
	27	Reimbursed business mileage expense (350 miles at $0.50 per mile).
	28	Paid wages of $2,700 for the first 3 weeks of December.

The following additional items were disclosed for use in making adjusting entries before preparing financial statements. No adjustments have been made during 2019.

a. The December 31 inventory count of supplies shows that only $2,500 remains unused.

b. The insurance premium of $6,400 was paid on April 1 and covers a term of two (2) years.

c. The prepaid rent account was created on January 1 when five (5) years rent was paid in advance.

d. As of December 31, the clowns had not been paid for one week of work in the amount of $750.

e. The office equipment was put into use on January 1, and has a useful life of ten (10) years with no salvage value. Clown Around, Inc. uses straight-line depreciation on all property, plant and equipment.

f. The computer equipment was also put into use on January 1, and is estimated to have a useful life of five (5) years with no salvage value.

g. The beginning balance in unearned revenue was earned when the clowns performed at a birthday party on December 7.

Required:

1. Enter the beginning balances.

2. Prepare journal entries to record each of the December transactions and events for Clown Around, Inc.

3. Prepare an unadjusted trial balance as of December 31, 2019.

4. Prepare adjusting entries to reflect a. through f.

5. Prepare an adjusted trial balance as of December 31, 2019.

6. Prepare an income statement and statement of retained earnings for the year ended December 31, 2019. Prepare a balance sheet as of December 31, 2019.

7. Prepare closing entries.

8. Prepare a post-closing trial balance

Expert Solution

ekkarill92 answered 2 years ago

ACE CONSTRUCTION CO. Unadjusted Trial Balance June 30, 2013 No. Account Title Debit Credit 101 Cash...

ACE CONSTRUCTION CO. Unadjusted Trial Balance June 30, 2013 No. Account Title Debit Credit 101 Cash 19,000 126 Supplies 7,000 128 Prepaid insurance 6,000 167 Equipment 139,290 168 accumulated Depreciation – Equipment $ 22,000 201 Accounts payable 6,200 251 Long-term notes payable 21,000 301 V. Ace, equity 79,900 302 V. Ace, withdrawals 26,500 401 Construction fees earned 144,000 623 Wages expense 49,000 633 Interest expense 2,310 640 Rent expense 13,000 683 Property taxes expense 4,100 684 Repairs expense 2,600 690...

Account Unadjusted trial balance(debit) Unadjusted trial balance(credit Adjusting entries(debit) adjusting entries(credit) adjusted trial balance(debit) Adjusted trial...

Account Unadjusted trial balance(debit) Unadjusted trial balance(credit Adjusting entries(debit) adjusting entries(credit) adjusted trial balance(debit) Adjusted trial balance(credit) Cash 32,236.75 32,236.75 baking supplies 18,500 18,500 merchandise inventory(fifo) 175.65 175.65 prepaid rent 1500 1500 prepaid insurance 2400 2400 baking equipment 6000 6000 accumulated depreciation 208.33 208.33 office supplies 600 600 accounts receivable 7700 7700 notes payable 10,000 10,000 wages payable 480 480 common stock 16,000 16,000 dividends 10,000 10,000 bakery sales 55,000 55,000 merchandise sales 221 221 baking supplies expense rent expense...

COUNTRYSIDE PAINTING SPECIALISTS Trial Balance November 30, 2018 Account Title Balance Debit Credit Cash $ 12,100...

COUNTRYSIDE PAINTING SPECIALISTS Trial Balance November 30, 2018 Account Title Balance Debit Credit Cash $ 12,100 Accounts Receivable 1,300 Office Supplies 200 Painting Equipment 13,500 Accounts Payable $ 3,300 Unearned Revenue 1,700 Common Stock 15,000 Dividends 3,500 Service Revenue 15,600 Advertising Expense 550 Rent Expense 1,800 Salaries Expense 2,400 Utilities Expense 250 Total $ 35,600 $ 35,600 P2-29A Requirement 1 Date Accounts and Explanation Post Ref. Debit Credit July 1 Cash 63,000 Common Stock 63,000 5 Rent Expense 510 Cash...

Epicenter Laundry UNADJUSTED TRIAL BALANCE June 30, 2019 ACCOUNT TITLE DEBIT CREDIT 1 Cash 11,000.00 2...

Epicenter Laundry UNADJUSTED TRIAL BALANCE June 30, 2019 ACCOUNT TITLE DEBIT CREDIT 1 Cash 11,000.00 2 Laundry Supplies 21,500.00 3 Prepaid Insurance 9,600.00 4 Laundry Equipment 232,600.00 5 Accumulated Depreciation 125,400.00 6 Accounts Payable 11,800.00 7 Sophie Perez, Capital 105,600.00 8 Sophie Perez, Drawing 10,000.00 9 Laundry Revenue 232,200.00 10 Wages Expense 125,200.00 11 Rent Expense 40,000.00 12 Utilities Expense 19,700.00 13 Miscellaneous Expense 5,400.00 14 Totals 475,000.00 475,000.00 The data needed to determine year-end adjustments are as follows: •...

Brighton Ltd has unadjusted trial balance as follows on 30 June 2020. Debit Credit Cash at...

Brighton Ltd has unadjusted trial balance as follows on 30 June 2020. Debit Credit Cash at bank 20,820 Accounts receivable 6,800 Prepaid insurance 5,200 Office supplies 1,200 Motor vehicles 108,000 Accumulated depreciation – Motor vehicles 45,000 Equipment 2,850 Accumulated depreciation – Equipment 1,120 Accounts payable 7,900 Bank loan 42,100 Unearned rental revenue 1,150 Capital 45,600 Drawings 13,100 Rental revenue 55,200 Salaries expense 24,200 Repairs and maintenance expense 4,100 Office supplies expense 9,900 Electricity expense 1,900 Totals 198,070 198,070 Additional information:...

Hipster Optical Trial Balance May 31, 2017 Acct. No Account Title Debit Credit 101 Cash $...

Hipster Optical Trial Balance May 31, 2017 Acct. No Account Title Debit Credit 101 Cash $ 17,700 106 Accounts receivable 7,680 124 Office supplies 5,600 128 Prepaid insurance 9,020 163 Office equipment 24,800 201 Accounts payable $ 1,520 230 Unearned service revenue 7,000 301 Peeta Black, capital 55,500 302 Peeta Black, withdrawals 1,400 403 Services revenue 21,200 623 Wages expense 14,200 640 Rent expense 3,500 690 Utilities expense 1,320 Totals $ 85,220 $ 85,220 Required: Using the trial...

Disney Entertainment Company December, 31,2019 Unadjusted Trial Balance Debit Credit 100 Cash 20820 101 Checks Received...

Disney Entertainment Company December, 31,2019 Unadjusted Trial Balance Debit Credit 100 Cash 20820 101 Checks Received 17700 102 Banks 13000 103 Checks Given - 120 Accounts Receivables 20000 11800 121 Notes Receivables 28000 - 153 Merhcandise Inventory 57000 - 252 Buildings 40000 300 Bank Loans - - 320 Accounts Payable - 10000 321 Notes Payable - 48000 500 Capital - 32000 600 Domestic Sales - 67000 621 Cost of the Goods Sold 10000 43720 General Administrative Expenses 6000 - TOTAL...

Pete's Roofing, Inc. Unadjusted Trial Balance December 31, 2014 Account Debit Credit Cash $ &nbs

Pete's Roofing, Inc. Unadjusted Trial Balance December 31, 2014 Account Debit Credit Cash $ 5,000 Accounts Receivable 20,000 Supplies 6,000 Prepaid Rent 10,500 Equipment 850,000 Accumulated Depreciation 235,000 Other Assets 65,000 Accounts Payable 10,500 Unearned Service Revenue 12,500 Note Payable 60,000 Common Stock 285,000 Retained Earnings 35,000 Service Revenue 625,000 Wages Expense 205,000 Rent Expense 92,600 Interest Expense 8,900 Totals $ 1,263,000 $ 1,263,000 At year end, you have the following data for adjustments: a. An analysis indicates that prepaid rent on December 31...

Milbank Repairs & Service Unadjusted Trial Balance June 30, 2019 Debit Balances Credit Balances Cash 14,150...

Milbank Repairs & Service Unadjusted Trial Balance June 30, 2019 Debit Balances Credit Balances Cash 14,150 Accounts Receivable 93,980 Supplies 22,650 Equipment 538,900 Accounts Payable 22,080 Unearned Fees 24,910 Nancy Townes, Capital 390,000 Nancy Townes, Drawing 18,680 Fees Earned 566,150 Wages Expense 131,350 Rent Expense 100,210 Utilities Expense 71,900 Miscellaneous Expense 11,320 1,003,140 1,003,140 For preparing the adjusting entries, the following data were assembled: Fees earned but unbilled on June 30 were $10,240. Supplies on hand on June 30 were...

The adjusted trial balance at April 30, 2017, for Willard Co. follows. Account Debit Credit Cash...

The adjusted trial balance at April 30, 2017, for Willard Co. follows. Account Debit Credit Cash $106,300 Accounts receivable 25,620 Trucks 560,000 Accumulated depreciation, trucks $84,000 Franchise 55,000 Accounts payable 20,540 Salaries payable 10,200 Unearned revenue 35,000 Sid Willard, capital 250,000 Sid Willard, withdrawals 75,000 Plumbing revenue 850,630 Depreciation expense, trucks 84,000 Salaries expense 272,450 Rent expense 60,000 Advertising expense 12,000 Income summary Totals $1,250,370 $1,250,370 Required: 1. Prepare the four closing entries. 2. Prepare a post-closing trial balance.