Requirement #3:Prepare a trial balance for July in the space below.
Requirement #4: Prepare adjusting entries using the following information in the General Journalbelow. Show your calculations!a) One month's insurance has expired.b) The remaining inventory of supplies is $375.c) The estimated depreciation on equipment is $175.d) The estimated income taxes are $3,200. General Journal Date Description (Account Name) Debit Credit a) Prepaid Insurance 4,400 Insurance Expense 4,400 b) Supplies Expense 525 Supplies 525 c) Depreciation Expense 175 Accumulated Depreciation 175 d) Tax Expense 3,200 Tax Payable 3,200 Requirement #5: Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed.
Requirement #6: Prepare an adjusted trial balance in the space below. Melvin Plumbing Corporation Adjusted Trial Balance July 31 Cash 90005 Equipment 11500 Supplies 375 Accounts Payable 10400 Insurance Expense 400 Rent Expense 5500 Salary Expense 3300 Service Revenue 16205 Common Stock 90000 Dividends 600 Accumulated Depreciation 175 Depreciation Expense 175 Supplies Expense 525 Prepaid Insurance 4400 Tax Expense 3200 Tax Payable 3200 119980 119980
Requirement #7:Prepare the financial statements for the Melvin Plumbing Corporation as of July 31 in the space below.You will only be preparing the income statement, statement of retained earnings, and the balance sheet.The statement of cash flows is a required financial statement, but is not required for this case study.
Melvin Plumbing Corporation Balance Sheet July 31 Assets: Cash 90,005 Supplies 375 Prepaid Insurance 4,400 Equipment 11,500 Less: Accum. Depr. 175 Total Assets 106,105 Liabilities: Accounts Payable 10,400 Income Tax Payable 3,200 Total Liabilities 13600 Stockholders' Equity: Common Stock 90,000 Retained Earnings 2,505 Total Stockholders' Equity 92,505 Total Liabilities and Stockholders' Equity $106,105
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