Question

Sutton Pond, Inc.'s, unadjusted and adjusted trial balances at June 30, 2016, follow. Requirements 1. Make the adjusting entries that account for the differences between the two trial balances. 2. Compute Sutton Pond Rentals' total assets, total liabilities, net income, and total equity. Sutton Pond, Inc.'s Trial Balance Sheet June 30, 2016 Trial Balance Adjusted Trial Balance Account Debit Credit Debit Credit Cash $ 8,300 $ 8,300 Accounts receivable 6,800 6,840 Interest receivable 700 Note receivable 4,800 4,800 Supplies 1,800 500 Prepaid Insurance 2,900 2,000 Building 68,000 68,000 Accumulated Depreciation (Building) $ 7,800 $ 9,300 Accounts payable 6,900 6,900 Wages payable 870 Unearned Rental Revenue 1,500 1,000 Common Stock 15,000 15,000 Retained Earnings 41,000 41,000 Dividends 4,000 4,000 Rental Revenue 25,100 25,640 Interest Revenue 1,000 1,700 Depreciation (Building) 1,500 Supplies Expense 1,300 Utilities Expense 300 300 Wage Expense 1,000 1,870 Property Tax Expense 400 400 Insurance Expense _____ ______ 900 _____ Total $ 98,300 $ 98,300 $ 101,410 $ 101,410 Please solve asap. Thank you so much. Having each step explained would be most helpful as well.

Answer 1

Adjustment entries

1) Account Receivable A/c Dr 40

To Rental Revenue A/c 40

2) Unearned rental revenue A/c Dr 500

To Rental Revenue 500

3) Interest receivable a/c Dr 700

To Interest Revenue A/c 700

4) Supplies Exp Dr 1300

To Supplies A/c 1300

5) Insurance Exp A/c Dr 900

To Prepaid exp 900

( Prepaid 2900 out of this 900 expired)

6) Depreciation a/c Dr 1500

To Accu depre. on builidng 1500

7) wages exp dr 870

To wages Payable 870

In income statement sales written means rent revenue