N chasse class notes

N chasse class notes - 3 Post the adjusting entries 4 Using...

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ACTG 1P11 FA Chapter 4: Sample Problem The trial balance (unadjusted) of Larry’s Lawn Chairs Ltd., shown below, pertains to December 31, 2010, which is the end of its year-long accounting period. Data needed for the adjusting entries include the following: a. Supplies on hand at year-end, $8,000. b. Amortization on equipment and vehicles, $10,000 c. Amortization on building, $13,000 d. Salary owed but not yet paid $5,000. e. Accrued service revenue, $17,000. f. Two-thirds of the balance of unearned revenue has been earned as of the year end. g. The company is subject to a 20% corporate tax rate. Required: 1. Open the ledger accounts with their unadjusted balances (in thousands). You may use the T-account format. 2. Journalize the Larry’s Lawn Chairs Ltd. adjusting entries at December 31, 2010. Key entries by letter (i.e. use a letter as posting reference for each entry).
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Unformatted text preview: 3. Post the adjusting entries 4. Using a worksheet, enter the trial balance and adjusting entries, and prepare the adjusted trial balance. 5. Prepare the income statement, the statement of changes in owners’ equity (retained earnings) and the balance sheet (non-classified). Larry's Lawn Chairs Ltd. Accounting Worksheet 31-Dec-10 (amounts in thousands) Debit Credit Cash 198 $ Accounts Receivable 370 Supplies 6 Equipment & Vehicles 100 Accumulated Amortization - Equip. & Vehicles 40 $ Building 250 Accumulated Amortization - Building 130 Accounts Payable 380 Salary Payable-Unearned Service revenue 54 Income tax payable-Common shares 100 Retained earnings 193 Dividends 65 Service revenue 296 Salary Expense 175 Supplies expense 10 Miscellaneous expense 19 1,193 $ 1,193 $ Trial Balance...
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N chasse class notes - 3 Post the adjusting entries 4 Using...

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