Type: Instant Download
Format: Microsoft Excel
Textbook: Financial Accounting Tools for Business Decision Making, Sixth Edition
Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example.
- Purchased $100 of supplies for cash.
- Recorded an adjusting entry to record use of $20 of the above supplies.
- Made sales of $1,300, all on account.
- Received $800 from customers in payment of their accounts.
- Purchased equipment for cash, $2,500.
- Recorded depreciation of building for period used, $600.
Identify impact of transactions on cash and net income.
Gil Vogel started his own consulting firm, Vogel Consulting, on June 1, 2012. The trial balance at June 30 is as follows.
Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance.
|VOGEL CONSULTINGTrial BalanceJune 30, 2012|
|Accounts Payable||$ 4,230|
|Unearned Service Revenue||5,200|
|Salaries and Wages Expense||4,000|
In addition to those accounts listed on the trial balance, the chart of accounts for Vogel also contains the following accounts: Accumulated Depreciation—Equipment, Utilities Payable, Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense.
- Supplies on hand at June 30 total $720.
- A utility bill for $180 has not been recorded and will not be paid until next month.
- The insurance policy is for a year.
- $4,100 of unearned service revenue has been earned at the end of the month.
- Salaries of $1,250 are accrued at June 30.
- The equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months.
- Invoices representing $3,900 of services performed during the month have not been recorded as of June 30.
- Prepare the adjusting entries for the month of June.
- Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. Use T accounts.
- Prepare an adjusted trial balance at June 30, 2012.
The Vang Hotel opened for business on May 1, 2012. Here is its trial balance before adjustment on May 31.
Prepare adjusting entries, adjusted trial balance, and financial statements.
|VANG HOTELTrial BalanceMay 31, 2012|
|Accounts Payable||$ 4,700|
|Unearned Rent Revenue||3,300|
|Salaries and Wages Expense||3,000|
- Insurance expires at the rate of $450 per month.
- A count of supplies shows $1,050 of unused supplies on May 31.
- Annual depreciation is $3,600 on the building and $3,000 on equipment.
- The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)
- Unearned rent of $2,500 has been earned.
- Salaries of $900 are accrued and unpaid at May 31.
- Journalize the adjusting entries on May 31.
- Prepare a ledger using T accounts. Enter the trial balance amounts and post the adjusting entries.
- Prepare an adjusted trial balance on May 31.
- Prepare an income statement and a retained earnings statement for the month of May and a classified balance sheet at May 31.
- Identify which accounts should be closed on May 31
- c. rent revenue $11,500
- Tot. adj. trial balance $114,630
- d. Net income $3,570