Question :
187.The unadjusted trial balance of Barber Housekeeping Service entered the : 1236888
187.The unadjusted trial balance of Barber Housekeeping Service is entered on the partial work sheet below.
Barber Housekeeping ServiceWork SheetFor the year ended December 31
AccountUnadjusted Trial BalanceAdjustmentsAdjusted Trial BalanceIncome StatementBalance Sheet and Statement of Owner’s Equity
DebitCreditDebitCreditDebitCreditDebitCreditDebitCredit
Cash50,000
Accounts Receivable10,000
Supplies8,000
Automobiles160,000
Accum. Depr.—Autos55,000
Accounts payable37,000
Salaries payable
C. Barber, Capital55,000
C. Barber, Withdrawals45,000
Fees earned275,400
Salary expense125,000
Rent expense24,400
Advertising expense
Supplies expense
Depreciation expense____________
Totals422,400422,400
Required: Complete the work sheet using the following information: (a) Salaries earned by employees that are unpaid and unrecorded, $5,000. (b) An inventory of supplies showed $3,000 of unused supplies still on hand. (c) Depreciation on automobiles, $30,000. (d) Advertising for November and December in the amount of $8,000 remains unpaid and unrecorded.
188.Complete the work sheet below for Barber Housekeeping Services by extending the account balances from the adjusted trial balance columns into the appropriate financial statement columns and by entering the amount of net income for the reporting period:
Barber Housekeeping ServiceWork SheetFor the year ended December 31
AccountUnadjusted Trial BalanceAdjustmentsAdjusted Trial BalanceIncome StatementBalance Sheet and Statement of Owner’s Equity
DebitCreditDebitCreditDebitCreditDebitCreditDebitCredit
Cash50,00050,000
Accounts Receivable10,00010,000
Supplies8,0005,0003,000
Automobiles160,000160,000
Accum. Depr.—Autos55,00030,00085,000
Accounts payable37,0008,00045,000
Salaries payable5,0005,000
C. Barber, Capital55,00055,000
C. Barber, Withdrawals45,00045,000
Fees earned275,400275,400
Salary expense125,0005,000130,000
Rent expense24,40024,400
Advertising expense8,0008,000
Supplies expense5,0005,000
Depreciation expense______30,00030,000
Totals.422,400422,40048,00048,000465,400465,400
Net income
Totals
189.The following adjusted trial balance is for Carla Co. at year-end December 31. The credit balance in Carla West, Capital at the beginning of the year, January 1, was $320,000. The owner, Carla West, invested an additional $100,000 during the current year. The land held for future expansion was also purchased during the current year.
Carla Co. AdjustedTrial BalanceDecember 31
Cash$60,000
Accounts receivable22,000
Prepaid rent7,000
Office supplies3,000
Investments in stocks120,000
Land held for future expansion220,000
Office equipment58,000
Accumulated depreciation—Equipment$38,000
Building280,000
Accumulated depreciation—Building200,000
Land180,000
Patents150,000
Accounts payable36,800
Salaries payable10,500
Interest payable7,900
Long-term note payable252,000
C. West, Capital420,000
C. West, Withdrawals60,000
Service fees earned470,800
Salaries expense195,000
Insurance expense18,000
Rent expense36,000
Depreciation expense—Equipment12,000
Depreciation expense—Building15,000_________
Totals$1,436,000$1,436,000
Required: Prepare a classified balance sheet as of December 31. (Note: A $21,000 installment on the long-term note payable is due within one year.)
