Requirement 4 prepare adjusting entries using the

Requirement #4:
Prepare adjusting entries using the following information in the General Journal
below. Show your calculations!
a) One month's insurance has expired.
4,800/12=400
b) The remaining inventory of supplies is $375.
900-375=575
c) 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.

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

Requirement #7:
Prepare the financial statements for the Melvin Plumbing Corporation as of July 31 in the space
You will only be preparing the income statement, statement of retained earnings, and the balan
The statement of cash flows is a required financial statement, but is not required for this case s
-

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