Question

Requirements:

1. Journalize and Post the adjusting entries using the T-accounts

2. Prepare an adjusted trial balance as of December 31, 2018

November 3: Purchased Canoes for $4,800 on account.

December 2: Purchased Canoes signing a notes payable for $7,200.

At December 31, the business gathers the following information for the adjusting entries:

a. Office supplies on hand, $165

b. Rent of one month has been used (1000.00).

c. Determine the depreciation on the building using straight-line depreciation. Assume the useful life of the building is five years and the residual value is $5,000.

d. $400 of unearned revenue has now been earned.

e. The employee who has been working the rental booth has earned $1,250 in wages that will be paid January 15, 2013.

f. Canyon Canoes has earned $1,850 of canoe rental revenue that has not been recorded or received.

g. Determine the depreciation on the canoes purchased on November 3 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0.

h. Determine the depreciation on the canoes purchased on December 2 using straight-line depreciation. Assume the useful life of the canoes is 4 years and the residual value is $0.

i.   Interest expense accrued on the notes payable, $50.

Unadjusted Trial Balance

Account	Debit	Credit
Cash	$12,125
Accounts Recievable	$5,750
Office Supplies	$1,250
Prepaid Rent	$3,000
Land	$85,000
Building	$35,000
Canoe	$12,000
Accounts Payable		$3,050
Utilities Payable		$325
Telephone Payable		$295
Unearned Revenue		$750
Notes Payable		$7,200
Wilson, Capital		$136,000
Wilson, Withdrawl	$450
Canoe Rental Revenue		$12,400
Rent Expense	$1,200
Utilities Expense	$475
Wages Expense	$3,300
Telephone Expense	$470
TOTALS:	$160,020	$160,020

Answer 1

Journal Entry
Date	Name of Account & Description	Debit	Credit
Nov-03	Canoe A/C	4800
	Accounts Payable		4800
	(Canoe purchased on account)
Dec-02	Canoe A/C	7200
	Notes Payable		7200
	(Canoe purchased signing a note payable)
Dec-31	Supply Expenses A/c	1085
	Office Supplies   A/c		1085
	(Being supply expenses incurred)
Dec-31	Rent Expenses	1000
	Prepaid Rent A/c		1000
	(Being one month rent used)
Dec-31	Depreciation Expenses A/c	6000
	Accumulated Dep.   A/c		6000
	(Being Depreciation charged building (35000-5000)/5)
Dec-31	Unearned Revenue A/c	400
	Canoe Rental Revenue   A/c		400
	(Being revenue earned)
Dec-31	Wages Expenses A/c	1250
	Wages Payable   A/c		1250
	(Being supply expenses incurred)
Dec-31	Depreciation Expenses A/c	1200
	Accumulated Dep.   A/c		1200
	(Being Depreciation charged (4800/4)
Dec-31	Depreciation Expenses A/c	1800
	Accumulated Dep.   A/c		1800
	(Being Depreciation charged 7200/4)
Dec-31	Accounts Receivables A/c	1850
	Canoe Rental Revenue A/c		1850
	(Being income recorded)
Dec-31	Interest Expenses A/c	50
	Interest Payable   A/c		50
	(Being interest expenses incurred)

Trial Balance
At December 31 , 201x
Particulars	Unadjusted		Adjustments		Adjusted
Account	Debit	Credit	Debit	Credit	Debit	Credit
Cash	12125				12125
Accounts Recievable	5750		1850		7600
Office Supplies	1250			1085	165
Prepaid Rent	3000			1000	2000
Land	85000				85000
Building	35000				35000
Accu. Depreciation-Building	0	0		6000		6000
Canoe	12000		4800+7200		24000
Accu. Depreciation-Canoe				1200+1800		3000
Accounts Payable		3050		4800		7850
Utilities Payable		325			0	325
Telephone Payable		295			0	295
Wages Payable				1250		1250
Interest Payable				50		50
Unearned Revenue		750	400			350
Notes Payable		7200		7200		14400
Wilson, Capital		136000				136000
Wilson, Withdrawl	450				450
Canoe Rental Revenue		12400		400+1850		14650
Rent Expense	1200		1000		2200
Utilities Expense	475				475
Wages Expense	3300		1250		4550
Supply Expenses	0	0	1085		1085
Depreciation Expenses			6000+1200+1800		9000
Interest Expenses			50		50
Telephone Expense	470				470
TOTALS:	160020	160020	24150	24150	184170	184170