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In: Accounting

Oriole Company was organized on July 1, 2019. Quarterly financial statements are prepared. The unadjusted and...

Oriole Company was organized on July 1, 2019. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown as follows.

FIRST Journalize the adjusting entries that were made THEN create an income statement, retained earnings, and balance sheet.

Oriole Company
Trial Balance
September 30, 2019

Unadjusted Adjusted
Dr. Cr. Dr. Cr.
Cash $ 8,700 $ 8,700
Accounts Receivable 10,500 11,600
Supplies 1,450 700
Prepaid Rent 2,150 1,250
Equipment 18,000 18,000
Accumulated Depreciation—Equipment $0 $     750
Notes Payable 9,500 9,500
Accounts Payable 2,450 2,450
Salaries and Wages Payable 0 720
Interest Payable 0 95
Unearned Rent Revenue 1,900 1,000
Common Stock 21,600 21,600
Dividends 1,600 1,600
Service Revenue 17,100 18,200
Rent Revenue 1,380 2,280
Salaries and Wages Expense 8,200 8,920
Rent Expense 1,850 2,750
Depreciation Expense 750
Supplies Expense 750
Utilities Expense 1,480 1,480
Interest Expense 95
$ 53,930 $ 53,930 $ 56,595 $ 56,595

Solutions

Expert Solution

Date General Journal Debit Credit
Sep. 30 Accounts receivable 1100
Service revenue 1100
(To record unbilled service revenue)
Sep. 30 Supplies expense 750
Supplies 750
(To record supplies used)
Sep. 30 Prepaid rent 900
Rent expense 900
(To record prepaid rent expired)
Sep. 30 Depreciation expense 750
Accumulated depreciation-equipment 750
(To record depreciation)
Sep. 30 Salaries and wages expense 720
Salaries and wages payable 720
(To record salaries and wages accrued)
Sep. 30 Interest expense 95
Interest payable 95
(To record interest accrued)
Sep. 30 Unearned rent revenue 900
Rent revenue 900
(To record rent revenue earned)
Oriole Company
Income Statement
For the Quarter Ended September 30, 2019
Revenue:
Service revenue 18200
Rent revenue 2280
Total revenue 20480
Expenses:
Salaries and wages expense 8920
Rent expense 2750
Depreciation expense 750
Supplies expense 750
Utilities expense 1480
Interest expense 95
Total expense 14745
Net income 5735
Oriole Company
Statement of Retained Earnings
For the Quarter Ended September 30, 2019
Beginning balance 0
Add: Net income 5735
Less: Dividends -1600
Net change 4135
Ending balance 4135
Oriole Company
Balance Sheet
September 30, 2019
Assets
Cash 8700
Accounts receivable 11600
Supplies 700
Prepaid rent 1250
Equipment 18000
Less: Accumulated depreciation 750 17250
Total assets 39500
Liabilities and Stockholders' Equity
Notes payable 9500
Accounts payable 2450
Salaries and wages payable 720
Interest payable 95
Unearned rent revenue 1000
Total liabilities 13765
Common stock 21600
Retained earnings 4135
Total stockholders' equity 25735
Total liabilities and stockholders' equity 39500

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