Question

PLEASE answer number 2 (worksheet) I am really struggling with it.

Below is the unadjusted trial balance for Walton Anvils as of December 31, 2016, and the data for the adjustments. There is also an Excel Template for this problem that you may download and use (or you may use your own).

Walton Anvils
Unadjusted Trial Balance
December 31, 2016
	Balance
Account Title	Debt	Credit
Cash	$    16,900.00
Accounts Receivable	17,500
Prepaid Rent	2,500
Office Supplies	1,900
Equipment	23,000
Accumulated Depreciation - Equipment		$       7,000.00
Accounts Payable		6,200.00
Salaries Payable
Unearned Revenue		5,600.00
Common Stock		28,000.00
Retained Earnings		1,600.00
Dividends	4,500
Service Revenue		20,800.00
Salaries Expense	2,900
Rent Expense
Depreciation Expense - Equipment
Supplies Expense
Total	$    69,200.00	$    69,200.00

Adjustment Data

a. Unearned revenue still unearned at December 31, 2016	$1,800
b. Prepaid rent still in force at December 31, 2016	$2,300
c. Office supplies used	$1,400
d. Depreciation	$380
e. Accrued Salaries Expense at December 31, 2016	$210

Requirements

1.Open T-accounts using the balances in the unadjusted trial balance.

2.Complete the worksheet for the year ended December 31, 2016.

3.Prepare the adjusting entries and post to the T-accounts.

4.Prepare the adjusted trial balance.

5.Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.

6.Prepare the closing entries and post to the T-accounts.

7.Prepare a post-closing trial balance.

8.Calculate the current ratio for the company.

Answer 1

Walton Anvils
Trial Balance
December 31st 2016
	Unadjusted Balance		Adjustments		Balance after Adjustment
Account Title	Debt	Credit	Debt	Credit	Debt	Credit
Cash	$    16,900.00				$ 16,900.00
Accounts Receivable	$    17,500.00				$ 17,500.00
Prepaid Rent	$       2,500.00			$     200.00	$    2,300.00
Office Supplies	$       1,900.00			$ 1,400.00	$        500.00
Equipment	$    23,000.00				$ 23,000.00
Accumulated Depreciation - Equipment		$                     7,000.00		$     380.00		$         7,380.00
Accounts Payable		$                     6,200.00				$         6,200.00
Salaries Payable				$     210.00		$             210.00
Unearned Revenue		$                     5,600.00	$ 3,800.00			$         1,800.00
Common Stock		$                   28,000.00				$       28,000.00
Retained Earnings		$                     1,600.00				$         1,600.00
Dividends	$       4,500.00				$    4,500.00
Service Revenue		$                   20,800.00		$ 3,800.00		$       24,600.00
Salaries Expense	$       2,900.00		$     210.00		$    3,110.00
Rent Expense			$     200.00		$        200.00
Depreciation Expense - Equipment			$     380.00		$        380.00
Supplies Expense			$ 1,400.00		$    1,400.00
Total	$    69,200.00	$                   69,200.00			$ 69,790.00	$       69,790.00

Adjusted Journal Entries

Transaction	Account Title	Debit	Credit
a	Unearned Revenue	$                     3,800.00
	Service Revenue		$ 3,800.00
	(Revenue Earned)
b	Rent Expense	$                         200.00
	Prepaid Rent		$     200.00
	(Rent accrued deducted from prepaid rent)
c	Supplies Expenses	$                     1,400.00
	Office Supplies		$ 1,400.00
	(Office supplies used)
d	Depreciation Expense-Equipment	$                         380.00
	Accumulated Depreciation -Equipment		$     380.00
	(Depreciation Charged)
e	Salaries	$                         210.00
	Salaries Payable		$     210.00
	(salaries payable)