Question

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

Answer 1

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