Question :
203. Use the following information to prepare the adjusted trial balance : 1256814
203. Use the following information to prepare the adjusted trial balance for Bella’s Beauty Salon. Bella’s Beauty Salon’s unadjusted trial balance for the current year follows:
BELLA’S BEAUTY SALON
Trial Balance
December 31
Cash
$ 4,200
Prepaid insurance
1,480
Shop supplies
990
Shop equipment
3,860
Accumulated depreciation – shop equipment
$ 770
Building
57,500
Accumulated depreciation – building
3,840
Land
55,000
Unearned rent
1,600
Long-term notes payable
50,000
Common stock
10,000
Retained earnings
39,860
Rent earned
2,400
Fees earned
23,400
Wages expense
3,200
Utilities expense
690
Property taxes expense
600
Interest expense
4,350
Totals
$131,870
$131,870
Additional information:
a. An insurance policy examination showed $1,240 of expired insurance.
b. An inventory count showed $210 of unused shop supplies still available.
c. Depreciation expense on shop equipment, $350.
d. Depreciation expense on the building, $2,220.
e. A beautician is behind on space rental payments and this $200 of accrued revenue was unrecorded at the time the trial balance was prepared..
f. $800 of the Unearned Rent account balance was earned by year-end.
g. The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked four days this week for which she has not been paid.
h. Three months’ property taxes, totaling $450, have accrued. This additional amount of property taxes expense has not been recorded.
i. One month’s interest on the note payable, $600, has accrued but is unrecorded.
204. Prepare an income statement from the adjusted trial balance of Hanson Storage.
HANSON STORAGE
Adjusted Trial Balance
December 31
Cash
$ 3,050
Accounts receivable
400
Prepaid insurance
830
Office supplies
80
Office equipment
4,200
Accumulated depreciation – office equipment
$ 1,100
Buildings
98,000
Accumulated depreciation – buildings
28,000
Land
115,000
Wages payable
880
Property taxes payable
1,400
Interest payable
2,200
Unearned rent
460
Long-term notes payable
150,000
Common stock
15,000
Retained earnings
25,340
Dividends
21,000
Rent earned
57,500
Wages expense
25,000
Utilities expense
1,900
Property taxes expense
2,400
Insurance expense
800
Office supplies expense
250
Depreciation expense – office equipment
400
Depreciation expense – buildings
5,570
Interest expense
3,000
Totals
$281,880
$281,880
205. Prepare a statement of retained earnings from the adjusted trial balance of Hanson Storage.
HANSON STORAGE
Adjusted Trial Balance
December 31
Cash
$ 3,050
Accounts receivable
400
Prepaid insurance
830
Office supplies
80
Office equipment
4,200
Accumulated depreciation – office equipment
$ 1,100
Buildings
98,000
Accumulated depreciation – buildings
28,000
Land
115,000
Wages payable
880
Property taxes payable
1,400
Interest payable
2,200
Unearned rent
460
Long-term notes payable
150,000
Common stock
15,000
Retained earnings
25,340
Dividends
21,000
Rent earned
57,500
Wages expense
25,000
Utilities expense
1,900
Property taxes expense
2,400
Insurance expense
800
Office supplies expense
250
Depreciation expense – office equipment
400
Depreciation expense – buildings
5,570
Interest expense
3,000
Totals
$281,880
$281,880
