Question : 172. You have just accepted your first job out of college, : 1247067

 

172. You have just accepted your first job out of college, which requires you to evaluate loan requests at Beach Front National Bank. The first loan request you receive is from Surfer Dude Enterprises, a small company requesting $75,000.  The General Manager sent you the following trial balance (or Statement of Accounts) for its first year of operations ended December 31, 2010.Which of the following accounts do you think might need to be adjusted before an accurate set of financial statements could be prepared? 

 

Surfer Dude EnterprisesStatement of AccountsDecember 31, 2010

 

Cash

2,050

 

Billings Due from Others

15,070

 

Office Supplies

7,470

 

Trucks

26,370

 

Equipment

8,090

 

Amounts Owed to Others

 

2,850

Investments in Business

 

23,500

Service Revenues

 

73,650

Wages Expense

30,050

 

Rent Expense

7,330

 

Insurance Expense

2,400

 

Utilities Expense

700

 

Miscellaneous Expenses

470

      

 

100,000

100,000

 

 

 

 

 

 

 

 

 

The following adjustments might be necessary before an accurate set of financial statements could be prepared:

 

 

 

 

 

 

 

 

 

 

 

 

173. Hakik Enterprises offers rug cleaning services to business clients.  Below is the trial balance for Hakik Enterprises, which was prepared on the end of period spreadsheet (work sheet) for the year ended July 31, 2010.   

Hakik EnterprisesEnd of Period Spreadsheet (Work Sheet)For the Year Ended July 31, 2010

 

Trial Balance

Adjustments

Adjusted Trial Balance

 

Debit

Credit

Debit

Credit

Debit

Credit

Cash

36

 

 

 

 

 

Prepaid Insurance

12

 

 

 

 

 

Fees Receivable

56

 

 

 

 

 

Supplies

12

 

 

 

 

 

Equipment

60

 

 

 

 

 

Accum. Depreciation

 

12

 

 

 

 

Unearned Revenue

 

20

 

 

 

 

Accounts Payable

 

32

 

 

 

 

Wages Payable

 

 

 

 

 

 

Capital Stock

 

84

 

 

 

 

Dividends

4

 

 

 

 

 

Service Revenue

 

80

 

 

 

 

Advertising Expense

28

 

 

 

 

 

Wage Expense

20

 

 

 

 

 

Insurance Expense

 

 

 

 

 

 

Supplies Expense

 

 

 

 

 

 

Depreciation Expense

 

 

 

 

 

 

Totals

228

228

 

 

 

 

 

 

 

 

 

 

 

REQUIRED:  Enter the adjustment data in the work sheet for the transactions shown below and place the balances in the Adjusted Trial Balance columns.a)  The equipment is estimated to last for 5 years with no salvage value.  The asset will be depreciated evenly over its useful life.  Please record one month’s depreciation.b)  Accrued Wages $2.c)  Unused supplies on hand $8.d)  Of the unearned revenue, 75% has been earned.e)  Unexpired insurance remaining at the end of the month, $9.