Requirement 4 Prepare adjusting entries using the following information in the

Requirement 4 prepare adjusting entries using the

This preview shows page 9 - 14 out of 18 pages.

Requirement #4: Prepare adjusting entries using the following information in the General Journalbelow. Show your calculations!a) One month's insurance has expired.4,800/12=400b) The remaining inventory of supplies is $375.900-375=575c) The estimated depreciation on equipment is $175.d) The estimated income taxes are $3,200. General Journal Date Description (Account Name) Debit Credit 31-Jul Insurance Expense 400 Prepaid Insurance 400 31-Jul Supplies Expense 525 Supplies 525 31-Jul Depreciation 175 Accumulate Depreciation 175 31-Jul Income Tax Expene 3,200 Income 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.
Image of page 9
Requirement #6: Prepare an adjusted trial balance in the space below. Melvin Plumbing Corporation Adjusted Trial Balance July 31 Cash 90005 Prepaid Insurance 4400 Supplies 375 Equipment 11500 Accumulate Depreciation- Equipment 175 Account Payable 10400 Income Tax Payable 3200 Common Stock 90000 Service Revenue 16205 Dividends 600 Rent Expense 5500 Salaries Expense 3300 Insurance Expense 400 Supplies Expense 525 Depreciation Expense 175 Income Tax Expense 3200 119980 119980
Image of page 10
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 balanThe statement of cash flows is a required financial statement, but is not required for this case s -
Image of page 11
e below. nce sheet. 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 13,600 Stockholders' Equity: Common Stock 90,000 Retained Earnings 2,505 Total Stockholders' Equity 92,505 Total Liabilities and Stockholders' Equity $ 106,105
Image of page 12
Image of page 13
Image of page 14

You've reached the end of your free preview.

Want to read all 18 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture