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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 $3,200.General JournalDateDescription (Account Name)DebitCreditInsurance Expense 400Prepaid Insurance400Supplies Expense 525Supplies 525Depreciation Expense175Accumulated Depreciation175Income Tax Expense3,200Income Tax Payable3,200Requirement #5:Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances.Just add to the balances that are already listed.
Requirement #6: Prepare an adjusted trial balance in the space below.Melvin Plumbing CorporationAdjusted Trial BalanceJuly 31Account NameDebitCreditCash90005Insurance5325Supplies375Equipment 11500Accts Payable10400Common Stock90000Rent Expense5500Salary Expense3300Dividends600Service Revenue16205Accumulated Depreciation on Equip175Depreciation Expense175Income Tax Payable3200Income Tax Expense 3200119980119980
Requirement #7:Prepare the financial statements for the Melvin Plumbing Corporation as of July 31 in the spaceYou will only be preparing the income statement, statement of retained earnings, and the balancThe statement of cash flows is a required financial statement, but is not required for this case sMelvin Plumbing CorporationMelvin Plumbing CorporationIncome StatementStatement of Retained EarningsFor the Month Ending July 31For the Month Ending July 31Revenues:Retained Earnings, July 1Revenue16,205Add: Net Income3,105SubtotalExpenses:Less: Dividends600Rent Expense5,500Retained Earnings, July 31$ 2,505 Salaries Expense3,300Insurance Expense400Supplies Expense525Depreciation Expense175Income Tax Expense3,200Total Expenses13,100Net Income$ 3,105