165. Listed below are accounts to use for transactions (a) through (j), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.
1.
Cash
2.
Accounts Receivable
3.
Office Supplies
4.
Land
5.
Interest Receivable
6.
Building
7.
Accumulated Depreciation – Office Equipment
8.
Depreciation Expense – Office Equipment
9.
Accounts Payable
10.
Interest Payable
11.
Insurance Payable
12.
Utilities Expense
13.
Notes Payable
14.
Capital Stock
15.
Prepaid Insurance
16.
Service Revenue
17.
Retained Earnings
18.
Insurance Expense
19.
Utilities Payable
20.
Office Supplies Expense
21.
Unearned Service Revenue
22.
Dividends
23.
Interest Expense
Transactions
Account(s) Debited
Account(s) Credited
a. Utility bill is received; payment will be made in 10 days.
b. Paid the utility bill previously recorded in transaction (a).
c. Bought a three-year insurance policy and paid in full.
d. Made an entry to adjust for the expired portion of the insurance premium (for the policy mentioned in transaction (c).)
e. Received $7,000 from a contract to perform accounting services over the next two years.
f. Made an entry to adjust for half of the services performed in (e).
g. Purchased office supplies, paying part cash and charging the balance on account.
h. Borrowed money from a bank and signed a note payable due in six months.
i. Recorded one-month’s accrued interest on the note payable in (h).
j. Depreciation is recorded on office equipment.
166. Encore Consulting is completing the accounting information processing at the end of the company’s first fiscal year, December 31, 2011. The following trial balances are available.
Accounts
Unadjusted Trial Balance
Adjusted Trial Balance
Debits
Credits
Debits
Credits
Cash
13,000
13,000
Accounts Receivable
1,500
1,800
Prepaid Insurance
600
200
Supplies
3,800
3,000
Machines
30,000
30,000
Accum. Depr. – Machines
12,000
17,500
Wages Payable
900
Unearned Revenue
6,700
6,500
Capital Stock
24,000
24,000
Dividends
4,800
4,800
Service Revenue
25,000
25,500
Wages Expense
14,000
14,900
Insurance Expense
400
Supplies Expense
800
Depreciation Expense
5,500
67,700
67,700
74,400
74,400
A. Reconstruct the adjusting entries and give a brief explanation of each.B. What is the amount of net income?
167. Given the following account balances for Garry’s Tree Service, prepare a trial balance.
Cash
$25,000
Supplies
1,000
Accounts Payable
7,000
Capital Stock
10,000
Retained Earnings
22,910
Wage Expense
2,000
Machinery
18,350
Wages Payable
3,600
Service Revenue
21,000
Rent Expense
11,500
Unearned Revenue
1,500
Accumulated Depreciation – Machinery
7,340
Prepaid Rent
12,200
Dividends
3,300
Accounts
Debits
Credits
Cash
25,000
Supplies
1,000
Prepaid Rent
12,200
Machinery
18,350
Accumulated Depreciation
7,340
Accounts Payable
7,000
Wages Payable
3,600
Unearned Revenue
1,500
Capital Stock
10,000
Retained Earnings
22,910
Dividends
3,300
Service Revenue
21,000
Wage Expense
2,000
Rent Expense
11,500
Totals
73,350
73,350
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