Question

Instructions

1- You should use a Microsoft Office Word to accomplish this assignment.

SABIC Corporation December 01, 2017

Account Titles

Cash $18,000

Supplies 3,000

Prepaid Insurance 600

Building 7,000

Account Payable 8,600

Notes Payable 1,200

Unearned Service Revenue 2,500

Common Stock 10,000

Dividends 500

Service Revenue 12,000

Salaries Expense 4,000

Rent Expense 1,200


Assumes the following adjustments data  

1. Supplies on hand at December. 31 total $1000.

2. Expired insurance for the month is $100.

3. Depreciation for the month is $150.

4. Services worth $900 related to the previously recorded unearned revenue had been performed.

5. Services performed but unrecorded at December 31 are $300.

6. Interest Expense accrued at December 31 is $180.

7. Accrued salaries at December 31 are $700.



Required:

In a worksheet format prepare  

1. Trail balance (14 points).

2. Adjustments including adjusting entries and column (38 points).

3. Adjusted Trail balance (22 points).

4. Income Statement (11 points).

5. Balance sheet (Financial Position) Statement (15 points)

Answer 1

1			Worksheet
					Trial Balance		Adjustments		Adjusted Trial balance		Income statement		Balance sheet
	Account Name				Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
	Cash				18000				18000				18000
	Accounts receivable						300		300				300
	Supplies				3000			2000	1000				1000
	Prepaid Insurance				600			100	500				500
	Building				7000				7000				7000
	Accumulated depreciation					0		150		150				150
	Accounts payable					8600				8600				8600
	Salaries payable							700		700				700
	Interest payable					0		180		180				180
	Notes payable					1200				1200				1200
	Unearned service revenue					2500	900	0		1600				1600
	Common stock					10000				10000				10000
	Dividends				500				500				500
	Service revenue					12000		1200		13200		13200
	Rent expense				1200				1200		1200
	Supples expense				0		2000		2000		2000
	Insurance expense				0		100		100		100
	Depreciation expense				0		150		150		150
	Interest expense				0		180		180		180
	Salaries expense				4000		700		4700		4700
	Totals				34300	34300	4330	4330	35630	35630	8330	13200
	Net income										4870			4870
											13200	13200	27300	27300
	Adjusting entries:
	Date	Account titles and explanation			Debit	Credit
	2017
	Dec 31.
	1	Supplies expense		(3000-1000)	2000
		Supplies				2000
		(Supplies used)
	2	Insurance expense			100
		Prepaid insurance				100
		(Insurance expenses expired)
	3	Depreciation expense			150
		Accumulated depreciation				150
		(Depreciation recorded)
	4	Unearned service revenue			900
		Service revenue				900
		(Service related to previously recorded
		Unearned revenue)
	5	Accounts receivable			300
		Service revenue				300
		(Services performed but unrecorded)
	6	Interest expense			180
		Interest payable				180
		(Interest expense accrued)
	7	Salaries expense			700
		Salary payable				700
		(Salary accrued)