At December 31, the unadjusted trial balance of H&R Tacksreports Salaries and Wages Payable of $0 and Salaries and WagesExpense of $27,000. Employees have been paid for work done up toDecember 27, but the $1,300 they have earned for December 28â31 hasnot yet been paid or recorded. 1. Prepare the adjusting journalentry on December 31. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the firstaccount field.)
At December 31, the unadjusted trial balance of H&R Tacksreports Salaries and Wages Payable of $0 and Salaries and WagesExpense of $27,000. Employees have been paid for work done up toDecember 27, but the $1,300 they have earned for December 28â31 hasnot yet been paid or recorded. 1. Prepare the adjusting journalentry on December 31. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the firstaccount field.)
Related questions
1. For each source information shown below, prepare theappropriate journal entry. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the firstaccount field.) a. Purchase order dated October 13 for massagechairs costing $860 and oil supplies costing $335. b. Remittanceadvice from customer for $112, received October 17. c. Receivingreport indicating October 22 receipt of October 13 order. Alsoreceived supplier invoice totaling $1,195 d. NGS check for paymentin full of October 13 order.
| 2. | Nicole has asked you to prepare a bank reconciliation for NGS.According to her records, NGSâs cash balance is $7,900 at December31, but the bank reports a balance of $7,400. |
| a. | The bank deducted $460 for an NSF check froma customer deposited on December 22. | ||||
| b. | NGS has written checks totaling $5,400 thathave not yet cleared the bank. | ||||
| c. | The bank added $45 cash to the account forinterest earned in December. | ||||
| d. | NGS made a $5,170 deposit on December 31,which will be recorded by the bank in January. | ||||
| e. | The bank deducted $45 for servicecharges. | ||||
| f. | NGS wrote a check to a supplier on account for $300 butmistakenly recorded it as $30.
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Terrific Temps fills temporary employment positions for localbusinesses. Some businesses pay in
advance for services; others are billed after services have beenperformed. Advanced payments are
credited to an account entitled Unearned Fees. Adjusting entriesare performed on a monthly basis.
An unadjusted trial balance dated December 31, 2015, follows. (Bearin mind that adjusting entries
have already been made for the first 11 months of 2015, but not forDecember.)
| TERRIFIC TEMPS UNADJUSTED TRIAL BALANCE DECEMBER 31, 2015 | |||||
| Cash | $ | 27,020 | |||
| Accounts receivable | 59,200 | ||||
| Unexpired insurance | 900 | ||||
| Prepaid rent | 3,000 | ||||
| Office supplies | 600 | ||||
| Equipment | 60,000 | ||||
| Accumulated depreciation: equipment | $ | 29,500 | |||
| Accounts payable | 4,180 | ||||
| Notes payable | 12,000 | ||||
| Interest payable | 320 | ||||
| Unearned fees | 6,000 | ||||
| Income taxes payable | 4,000 | ||||
| Unearned revenue | 20,000 | ||||
| Retained earnings | 49,000 | ||||
| Capital stock | 25,000 | ||||
| Dividends | 3,000 | ||||
| Feesearned | 75,000 | ||||
| Travel expense | 5,000 | ||||
| Insurance expense | 2,980 | ||||
| Rentexpense | 9,900 | ||||
| Office supplies expense | 780 | ||||
| Utilities expense | 4,800 | ||||
| Depreciation expense: equipment | 5,500 | ||||
| Salaries expense | 30,000 | ||||
| Interest expense | 320 | ||||
| Income taxes expense | 12,000 | ||||
| $ | 225,000 | $ | 225,000 | ||
| Other Data | |
| 1. | Accrued butunrecorded fees earned as of December 31, 2015, amount to$1,500. |
| 2. | Records showthat $2,500 of cash receipts originally recorded as unearned feeshad been earned as of December 31. |
| 3. | The companypurchased a six-month insurance policy on September 1, 2015, for$1,800. |
| 4. | On December 1,2015, the company paid its rent through February 28, 2016. |
| 5. | Office supplieson hand at December 31 amount to $400. |
| 6. | All equipment was purchased when the business first formed. Theestimated life of the equipment at that time was 10 years (or 120months). |
| 7. | On August 1, 2015, the company borrowed $12,000 by signing asix-month, 8 percent note payable. The entire note, plus sixmonths' accrued interest, is due on February 1, 2016. |
| 8. | Accrued butunrecorded salaries at December 31 amount to $2,700. |
| 9. | Estimated incometaxes expense for the entire year totals $15,000. Taxesare due in the first quarter of 2016. |
| Instructions |
| a. | For each of thenumbered paragraphs, prepare the necessary adjusting entry.(If no entry is required for a transaction/event, select"No journal entry required" in the first accountfield.) |
Journal Entry Worksheet
Record the accrued but uncollected fees earned.
Record fees earned as of December 31st.
Record the December insurance expense.
Record the December rent expense.
Record the offices supplies used in December.
Record the December depreciation expense.
Record the interest accrued in December.
Record the salaries accrued in December.
Record the income taxes accrued in December.
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*Enter debits before credits
| 1. | Fees earned | |
| 2. | Travel expense | |
| 3. | Insurance expense | |
| 4. | Rent expense | |
| 5. | Office supplies expense | |
| 6. | Utilities expense | |
| 7. | Depreciation expense: equipment | |
| 8. | Interest expense | |
| 9. | Salaries expense | |
| 10. | Income taxes expense |
| . | The unadjusted trial balance reportsdividends of $3,000. As of December 31, 2015, have these dividendsbeen paid? | ||||
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The general ledger of the Karlin Company, a consulting company,at January 1, 2016, contained the following account balances: |
| Account Title | Debits | Credits |
| Cash | 32,600 | |
| Accountsreceivable | 11,500 | |
| Equipment | 18,000 | |
| Accumulateddepreciation | 5,400 | |
| Salariespayable | 6,750 | |
| Common stock | 42,500 | |
| Retainedearnings | 7,450 | |
| Total | 62,100 | 62,100 |
The following is a summary of the transactions for the year:
| a. | Sales of services, $108,000, ofwhich $32,400 was on credit. |
| b. | Collected on accountsreceivable, $22,900. |
| c. | Issued shares of common stock inexchange for $9,000 in cash. |
| d. | Paid salaries, $39,250 (of which$6,750 was for salaries payable). |
| e. | Paid miscellaneous expenses,$21,200. |
| f. | Purchased equipment for $11,500in cash. |
| g. | Paid $2,575 in cash dividends toshareholders. |
| 1. | Accrued salaries at year-endamounted to $785. |
| 2. | Depreciation for the year on theequipment is $1,800. |
Required information
| Required: |
| Prepare the summary, adjusting and closing entries for each ofthe transactions listed. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.) 1)Sales of services, $108,000, of which $32,400 was oncredit. 2)Collected on accounts receivable, $22,900. 3)Issued shares of common stock in exchange for $9,000 incash. 4)Paid salaries and wages, $39,250 (of which $6,750 was forsalaries payable). 5)Paid miscellaneous expenses, $21,200. 6)Purchased equipment for $11,500 in cash. 7)Paid $2,575 in cash dividends to shareholders. 8)Record the adjusting journal entry for accrued salaries andwages at year-end that amounted to $785. 9)Record the adjusting journal entry for annual depreciation of$1,800. 10)Record the entry to close the revenue accounts using theincome summary. 11)Record the entry to close the expense accounts using theincome summary. (Use a single entry, not a separate entry for eachexpense account.) 12)Record the entry to close the income summary account. | |
| 2) | Post the transactions, adjusting and closing entries into theappropriate t-accounts. (Enter the letter of thetransaction in the column next to the amount.) |
| 3) | Prepare an unadjusted trialbalance. |
| 4) | Prepare an adjusted trial balance. |
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5) Prepare an income statement for 2016. | |
6) Prepare a balance sheet as of December 31, 2016.(Amounts to be deducted should be indicated by a minussign.) | |
7) Prepare a post-closing trial balance. | |
