Question :
171. Hakik Enterprises offers rug cleaning services to business clients. Below : 1227154
171. Hakik Enterprises offers rug cleaning services to business clients. Below is the work sheet containing the trial balance for the month ended July 31, 2012.
Hakik EnterprisesWork SheetFor the Month Ended July 31, 2012
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
30
Retained Earnings
54
Dividends
4
Service Revenue
80
Advertising Expense
28
Wage Expense
20
Insurance Expense
Supplies Expense
Depreciation Expense
Totals
228
228
Enter the adjustments in the work sheet based on the data provided below. Then enter the adjusted account 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. 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.
Hakik EnterprisesWork SheetFor the Month Ended July 31, 2012
Trial Balance
Adjustments
Adjusted Trial Balance
Debit
Credit
Debit
Credit
Debit
Credit
Cash
36
36
Prepaid Insurance
12
(e) 3
9
Fees Receivable
56
56
Supplies
12
(c) 4
8
Equipment
60
60
Accum. Depreciation
12
(a) 1
13
Unearned Revenue
20
(d) 15
5
Accounts Payable
32
32
Wages Payable
(b) 2
2
Capital Stock
30
30
Retained Earnings
54
54
Dividends
4
4
Service Revenue
80
(d) 15
95
Advertising Expense
28
28
Wage Expense
20
(b) 2
22
Insurance Expense
(e) 3
3
Supplies Expense
(c) 4
4
Depreciation Expense
(a) 1
1
Totals
228
228
25
25
231
231
172. Hakik Enterprises offers rug cleaning services to business clients. Below is the work sheet containing the trial balance for the month ended July 31, 2012.
Hakik EnterprisesWork SheetFor the Month Ended July 31, 2012
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
30
Retained Earnings
54
Dividends
4
Service Revenue
80
Advertising Expense
28
Wage Expense
20
Insurance Expense
Supplies Expense
Depreciation Expense
Totals
228
228
Journalize adjusting entries based on the work sheet trial balance and the adjustment data provided below. a) The equipment is estimated to last for 5 years with no salvage value. The asset will be depreciated evenly over its useful life. 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.
173. If working papers are not considered part of the formal accounting records, then why are they used?