Rogers Company’s employees are paid a total of $1,600 per day for a 5-day workweek. The
employees are paid each Friday. This year the accounting period ends on Tuesday.
Prepare the December 31 year-end adjusting journal entry Rogers Company should make
to accrue wages.
Show the December 31 adjusting entry to record $750 of earned but unpaid salaries of
employees at the end of the current accounting period.
During the current year ended December 31, clients paid fees in advance for accounting
services amounting to $15,000. These fees were recorded in an account called Unearned
Accounting Fees. If $3,500 of these fees remains unearned on December 31 of this year,
present the December 31 adjusting entry to bring the accounts up to date.
The following unadjusted and adjusted trial balances are from the current year’s
accounting system for Excelsior Inc.
Excelsior, Inc.
Trial Balances
For Year Ended December 31
Unadjusted
Trial Balance
Adjusted
Trial Balance
Debit
Credit
Debit
Credit
Cash
11,300
11,300
Accounts
Receivable
16,340
17,140
Office supplies
1,145
645
Prepaid
advertising
1,000
450
Building
26,700
26,700
Accumulated
depreciation—
Building
1,300
6,300
Accounts
payable
3,320
3,500
Unearned
services
revenue
4,410
3,010
Common stock
1,000
1,000
Retained
earnings
16,905
16,905
Services
revenue
72,400
74,600
Salaries
expense
34,500
34,500
Utilities
expense
5,450
5,630
Advertising
expense
2,900
3,450
Supplies
expense
500
Depreciation
expense—
building
5,000
Total
99,335
99,335
105,315
105,315
Present the six adjusting entries in general journal form that explain the changes in the
account balances from the unadjusted to the adjusted trial balance.
Dec.
earned but not yet
collected.
Dec.
To adjust for supplies
used.
Trapper Company Inc.’s unadjusted and adjusted trial balances on December 31 of the
current year are as follows:
Unadjusted
Trial Balance
Adjusted
Trial Balance
Cash
4,000
4,000
Prepaid insurance
1,500
1,200
Equipment
9,000
9,000
Accumulated
depreciation—
Equipment
800
1,800
Salaries payable
1,000
Unearned repair
fees
2,500
600
Repair fees earned
10,000
11,900
Salaries expense
3,500
4,500
Depreciation
expense—Equip.
1,000
Insurance expense
600
900
Common stock
100
100
Retained earnings
____
5,400
_____
5,400
Total
18,700
18,700
20,700
20,700
Present the four adjusting journal entries that were recorded by Trapper Company.
Dec.
Insurance Expense
Prepaid Insurance
Record the December 31 adjusting entries for the following transactions and events in
general journal form. Assume that December 31 is the end of the annual accounting
period.
a. The Prepaid Insurance account shows a debit balance of $2,340, representing the cost
of a two-year fire insurance policy that was purchased on October 1 of the current year
and has not been adjusted to-date.
b. The Store Supplies account has a debit balance of $400; a year–end inventory count
reveals $80 of supplies still on hand.
c. On November 1 of the current year, Rent Earned was credited for $1,500. This amount
represented the rent earned for a three-month period beginning November 1.
d. Estimated depreciation on store equipment is $600.
e. Accrued salaries amount to $1,400.
Based on the unadjusted trial balance for Highlight Styling, Inc. and the adjusting
information given below, prepare the adjusting journal entries for Highlight Styling Inc.
Highlight Styling Inc.’s unadjusted trial balance for the current year follows:
Highlight Styling, Inc.
Trial Balance
December 31
Cash
$2,200
Prepaid insurance
1,680
Shop supplies
790
Shop equipment
3,860
Accumulated
depreciation—shop
equipment
$770
Building
59,500
Accumulated
depreciation—building
3,840
Land
55,000
Unearned rent
2,600
Long-term notes payable
50,000
Common stock
1,000
Retained earnings
47,860
Rent earned
2,400
Fees earned
23,400
Wages expense
3,200
Utilities expense
690
Property taxes expense
600
Interest expense
4,350
________
Total
$131,870
$131,870
Additional information:
a. An insurance policy examination showed $1,040 of expired insurance.
b. An inventory count showed $210 of unused shop supplies still available.
c. Depreciation expense on shop equipment, $350.
d. Depreciation expense on the building, $2,020.
e. A beautician is behind on space rental payments, and this $200 of accrued revenues
was unrecorded at the time the trial balance was prepared.
f. $800 of the Unearned Rent account balance was still unearned by year-end.
g. The one employee, a receptionist, works a five-day workweek at $50 per day. The
employee was paid last week but has worked four days this week for which she has not
been paid.
h. Three months’ property taxes, totaling $450, have accrued. This additional amount of
property taxes expense has not been recorded.
i. One month’s interest on the note payable, $600, has accrued but is unrecorded.
Using the information presented below, prepare an income statement from the adjusted
trial balance of Dodson Containers Inc.
DODSON CONTAINERS, Inc.
Adjusted Trial Balance
December 31
Cash
$3,050
Accounts receivable
400
Prepaid insurance
830
Office supplies
80
Office equipment
4,200
Accumulated depreciation—
office equipment
$1,100
Buildings
98,000
Accumulated depreciation—
buildings
28,000
Land
115,000
Wages Payable
880
Property taxes payable
1,400
Interest payable
2,200
Unearned rent
460
Long-term notes payable
150,000
Common stock
1,000
Retained earnings
39,340
Dividends
21,000
Rent earned
67,500
Wages expense
29,000
Utilities expense
2,900
Property taxes expense
2,400
Insurance expense
5,800
Office supplies expense
250
Depreciation expense—office
equipment
400
Depreciation expense—
buildings
5,570
Interest expense
3,000
Total
$291,880
$291,880
Rent earned
$67,500
Operating expenses
Wages expense
$29,000
Utilities expense
Property taxes expense
Depreciation expense—office
equipment
Depreciation expense—
buildings
Using the information presented below, prepare a statement of retained earnings and
balance sheet from the adjusted trial balance of Dodson Containers, Inc.
DODSON CONTAINERS, Inc.
Adjusted Trial Balance
December 31
Cash
$3,050
Accounts receivable
400
Prepaid insurance
830
Office supplies
80
Office equipment
4,200
Accumulated depreciation—
office equipment
$1,100
Buildings
98,000
Accumulated depreciation—
buildings
28,000
Land
115,000
Wages Payable
880
Property taxes payable
1,400
Interest payable
2,200
Unearned rent
460
Long-term notes payable
150,000
Common stock
11,000
Retained earnings
29,340
Dividends
21,000
Rent earned
67,500
Wages expense
29,000
Utilities expense
2,900
Property taxes expense
2,400
Insurance expense
5,800
Office supplies expense
250
Depreciation expense—office
equipment
400
Depreciation expense—
buildings
5,570
Interest expense
3,000
Total
$291,880
$291,880
18,180
Net income
Less Dividends
Retained Earnings, December 31
Cash
Accounts Receivable
Prepaid Insurance
Office Equipment
Less: Accumulated depreciation
Using the information given below, prepare an income statement and statement of
retained earnings for Rapid Car Services, Inc. from the adjusted trial balance. The
stockholders did not make any additional investments in the company during the year.
Rapid Car Services, Inc.
Adjusted Trial Balance
For the year ended December 31
Cash
$33,000
Accounts receivable
14,200
Office supplies
1,700
Vehicles
100,000
Accumulated depreciation—
Vehicles
45,000
Accounts payable
11,500
Common stock
1,000
Retained earnings
70,900
Dividends
40,000
Fees earned
155,000
Rent expense
13,000
Office supplies expense
2,000
Utilities expense
2,500
Depreciation Expense—
Vehicles
15,000
Salary expense
50,000
Fuel expense
12,000
Total
$283,400
$283,400