The income statement of Montee Co. for the month of July shows net income of $1,450 based on Service Revenue $5,500, Salaries and Wages Expense $2,300, Supplies Expense $1,200, and Utilities Expense $600. In reviewing the statement, you discover the following.
- Insurance expired during July of $400 was omitted.
- Supplies expense includes $250 of supplies that are still on hand at July 31.
- Depreciation on equipment of $150 was omitted.
- Accrued but unpaid salaries and wages at July 31 of $300 were not included.
- Services performed but unrecorded totaled $650.
Instructions
Prepare a correct income statement for July 2019
A partial adjusted trial balance of Frangesch Company at January 31, 2019, shown as following.
Frangesch Company
Adjusted Trial Balance
January 31, 2019
Adjusted Trial Balance
January 31, 2019
Instructions
Answer the following questions, assuming the year begins January 1.
- If the amount in Supplies Expense is the January 31 adjusting entry, and $1,000 of supplies was purchased in January, what was the balance in Supplies on January 1?
- If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for one year, what was the total premium and when was the policy purchased?
- If $3,800 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2018.
Selected accounts of Holly Company are shown as follows.
Instructions
After analyzing the accounts, journalize (a) the July transactions and (b) the adjusting entries that were made on July 31.
The trial balances before and after adjustment for Turnquist Company at the end of its fiscal year are presented below.
Turnquist Company
Trial Balance
August 31, 2020
Trial Balance
August 31, 2020
Instructions
Prepare the adjusting entries that were made.
At Sekon Company prepayments are debited to expense when paid, and unearned revenues are credited to revenue when cash is received. During January of the current year, the following transactions occurred.
| Jan. 02 | Paid $1,920 for fire protection for the year. |
| 10 | Paid $1,700 for supplies. |
| 15 | Received $6,100 for services to be performed in the future. |
On January 31, it is determined that $2,100 of the services were performed and that there are $650 of supplies on hand.
Instructions
- Journalize and post the January transactions. (Use T-accounts.)
- Journalize and post the adjusting entries at January 31.
- Determine the ending balance in each of the accounts.