ACC 290T Wk 5 – Practice: Connect Knowledge Check

0 items
ACC 290T Wk 5 - Practice: Connect Knowledge Check
ACC 290T Wk 5 – Practice: Connect Knowledge Check
$8.00
Go to the store page
  • Description

ACC 290T Wk 5 – Practice: Connect Knowledge Check

GL0404 – Based on Problem 4-6A LO P4

The unadjusted trial balance for People First as December 31 is provided on the trial balance tab.

Information for adjustments is as follows:

  1. As of December 31, employees had earned $1,800 of unpaid and unrecorded salaries. The next payday is January 4, at which time $2,250 of salaries will be paid.

  2. The cost of supplies still available at December 31 is $2,000.

  3. The notes payable requires an interest payment to be made every three months. The amount of unrecorded accrued interest at December 31 is $2,300. The next interest payment, at an amount of $2,760, is due on January 15.

  4. Analysis of the unearned member fees account shows $2,000 remaining unearned at December 31.

  5. In addition to the member fees included in the revenue account balance, the company has earned another $10,800 in unrecorded fees that will be collected on January 31. The company is also expected to collect $11,000 on that same day for new fees earned in January.

  6. Depreciation expense for the year is $21,200.

 

 

 

Exercise 4-11 Preparing financial statements LO C3

The following adjusted year-end trial balance at December 31 of Wilson Trucking Company.

Account TitleDebit Credit
Cash$5,900    
Accounts receivable 16,500    
Office supplies 2,000    
Trucks 181,000    
Accumulated depreciation—Trucks   $37,286 
Land 75,000    
Accounts payable    9,900 
Interest payable    3,000 
Long-term notes payable    52,000 
K. Wilson, Capital    166,351 
K. Wilson, Withdrawals 19,000    
Trucking fees earned    142,500 
Depreciation expense—Trucks 24,049    
Salaries expense 66,833    
Office supplies expense 8,500    
Repairs expense—Trucks 12,255    
Totals$411,037 $411,037 

The K. Wilson, Capital account balance was $166,351 at December 31 of the prior year.

(1) Prepare the income statement for the year ended December 31.

(2) Prepare the statement of owner’s equity for the year ended December 31.

 

 

 

Exercise 4-12 Preparing a classified balance sheet LO C3

Account TitleDebit Credit
Cash$5,500    
Accounts receivable 24,000    
Office supplies 6,215    
Trucks 160,000    
Accumulated depreciation—Trucks   $32,960 
Land 44,000    
Accounts payable    9,500 
Interest payable    18,000 
Long-term notes payable    48,000 
K. Wilson, Capital    112,229 
K. Wilson, Withdrawals 20,000    
Trucking fees earned    128,000 
Depreciation expense—Trucks 21,259    
Salaries expense 52,997    
Office supplies expense 5,000    
Repairs expense—Trucks 9,718    
Totals$348,689 $348,689 

Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31.