Question

In: Accounting

Required information [The following information applies to the questions displayed below.] North Star prepared the following...

Required information

[The following information applies to the questions displayed below.]

North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.

Account Titles Debit Credit
Cash $ 11,700
Accounts Receivable 5,700
Prepaid Rent 2,340
Equipment 20,700
Accumulated Depreciation $ 1,130
Accounts Payable 1,130
Income Tax Payable 0
Common Stock 24,500
Retained Earnings 1,800
Sales Revenue 48,780
Salaries and Wages Expense 24,700
Utilities Expense 12,200
Rent Expense 0
Depreciation Expense 0
Income Tax Expense 0
Totals $ 77,340 $ 77,340

Other data not yet recorded at December 31:

Rent expired during the year, $1,170.

Depreciation expense for the year, $1,130.

Utilities used and unpaid, $8,700.

Income tax expense, $360.

T Accounts

Adjusted TB

Summarize the adjusting journal entries in T-accounts. After entering the beginning balances and computing the adjusted ending balances.

Prepaid Rent Rent Expense
Beg. Bal. 0 Beg. Bal. 0
1,170 (a) (a) 1,170
0 0
End. Bal. 1,170 End. Bal. 1,170
Accumulated Depreciation Depreciation Expense
Beg. Bal. 0 Beg. Bal. 0
1,130 (b) (b) 1,130
0 0
End. Bal. 1,130 End. Bal. 1,130
Accounts Payable Utilities Expense
Beg. Bal. 0 1,130 Beg. Bal. 12,200 0
8,700 (c) (c) 8,700
0 0
End. Bal. 9,830 End. Bal. 20,900
Income Tax Payable Income Tax Expense
Beg. Bal. 0 Beg. Bal. 0
360 (d) (d) 360
0 0
End. Bal. 360 End. Bal. 360

NORTH STARAdjusted Trial BalanceAs of December 31Account TitlesDebitCreditCash$11,700Accounts Receivable5,700Prepaid Rent1,170Equipment20,700Accumulated Depreciation2,260Accounts Payable9,830Income Tax Payable360Common Stock24,500Retained Earnings1,800Sales Revenue48,780Salaries and Wages Expense24,700Utilities Expense20,900Rent Expense1,170Depreciation Expense1,130Income Tax Expense360Totals$87,530$87,530

I keep getting that i am missing something

Solutions

Expert Solution

Transaction Assets Liabilities
a Prepaid Rent 1170
b Acumulated Dpriciation-Equipment 1130
c Accounts Payable 8700
d Income tax payable 360
Stockholder's Equity
Rent expense -1170
Depriciation Expense -1130
Utilities Expense -8700
Income tax expense -360
adjusting journal entries
Transaction Gneral Journal Debit Credit
a Rent expense 1170
Prepaid Rent 1170
b Depriciation Expense 1130
Accumulated Depriciation - Equipment 1130
c Utilities Expense 8700
Account Payable 8700
d Income tax expense 360
Income tax payable 360
a
Prepaid Rent
Beg Bal 2340
a 1170
End Bal 1170
Depriciation Expense
Beg Bal 1130
C 8700
End Bal 7570
Income Tax expense
Beg Bal 0
d 360
End Bal 360
Rent Expense
Beg Bal
a 1170
End Bal 1170
Utilities Expense
Beg Bal 12200
C 8700
End Bal 20900
Accounts Payable
Beg Bal 1130
C 8700
End Bal 9830
Accumulated Depriciation - Equipment
Beg Bal 1130
b 1130
End Bal 2260
Income Tax payable
Beg Bal.
d 360
End Bal 360
North Star
Adjusted Trial Balance
As of December 31
Account Titles Debit Credit
Cash 11700
Account Receivables 5700
Prepaid Rent 1170
Equipment 20700
Accumulated Depriciation - Equipment 2260
Accounts payale 9830
Income Tax payable 360
Common Stock 24500
Retained Earnings 1800
Sales Revenue 48780
Salaris and wages expense 24700
Utilities Expense 20900
Rent Expnse 1170
Depriciation Expense 1130
Income Tax Expense 360
87530 87530

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