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Practice Problems - Module 4

Practice Problems - Module 4 - Practice Problems Module 4...

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Practice Problems Module 4 Introduction to Financial Accounting in the 21 st Century © Gaber, Hayes & Porporato 2011 1 Practice problems module 4
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Practice Problems Module 4 Introduction to Financial Accounting in the 21 st Century © Gaber, Hayes & Porporato 2011 2 Practice Problem 1: Adjusting Entries Elaine Carpet Cleaners ended its first month of operations on June 30 of the current year. The unadjusted account balances are as follows: Elaine Carpet Cleaners Trial Balance June 30,19XX Debit Credit Cash $ 800 Accounts Receivable 400 Prepaid Rent 1,200 Supplies on Hand 900 Equipment 5,400 Accounts Payable $ 500 Elaine, Capital 6,000 Elaine, Drawing 300 Service Fees 3,200 Wages Expense 700 11700 12,700 The following information is also available: (1) The balance in Prepaid Rent was the amount paid on June 1 for the first three months' rent. (2) Supplies on hand at June 30 were $540. (3) The equipment, purchased June 1, has an estimated life of six years. (4) Unpaid wages at June 30 were $200. (5) Utility services used during June were estimated at $165. A bill is expected early in July. (6) Fees earned for services performed but not yet billed on June 30 were $300. REQUIRED In general journal form, make the adjusting entries needed at June 30.
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Practice Problems Module 4 PRACTICE PROBLEM 2 – TRIAL BALANCE AND ADJUSTMENTS The Ali, Inc., a commercial photography studio, has just completed its first full year of operations on December 31 of the current year. The general ledger account balances before year-end adjustments follow. No adjusting entries have been made to the accounts at any time during the year. Assume that all balances are normal. Cash ……………………..$1,400 Unearned Photography Fees $ 1,150 Accounts Receivable……… 2,200 Capital Stock …………..…..10,000 Prepaid Rent ………..………7,740 Photography Fees……. 20,900 Supplies on Hand…… 3,650
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