Chapter 15 Preparing Adjusting Entries and a Trial Balance • 443
15-4 ON YOUR OWN (continued)
ACCOUNT Insurance Expense ACCOUNT NO. 6130
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
ACCOUNT Supplies Expense—Store ACCOUNT NO. 6160
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
ACCOUNT Federal Income Tax Expense ACCOUNT NO. 6205
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔18 0 0 0 00
20–
Dec. 31 G18 10 4 0 0 00 10 4 0 0 00
20–
Dec. 31 G18 4 7 1 6 19 4 7 1 6 19
31 G18 1 0 8 8 59 19 0 8 8 59
444 • Working Papers
15-4 ON YOUR OWN (continued)
3.
Net Income before
Federal Income
Tax
–Of the Amount
Over =
Net Income
Subject to
Marginal Tax Rate
×Marginal Tax
Rate =Marginal
Income Tax
$ – $ = $ × = $
Total of income statement credit accounts …………………………. $
Less total of income statement debit accounts
TE
775,036.36
90,701.74 75,000.00 15,701.74 34% 5,338.59
Chapter 15 Preparing Adjusting Entries and a Trial Balance • 445
Name Date Class
15-4 ON YOUR OWN (continued)
2., 5., 6.
ACCOUNT TITLE DEBIT CREDIT
Cash 18 4 3 1 35
Petty Cash 2 0 0 00
Interest Receivable
Office Equipment 15 4 9 5 28
Accumulated Depreciation—Office Equipment
Store Equipment 28 4 9 1 48
Accumulated Depreciation—Store Equipment
Accounts Payable 8 4 9 1 04
Sales Tax Payable 4 9 1 5 22
Employee Income Tax Payable—Federal 7 4 3 00
Social Security Tax Payable 1 5 8 3 34
Medicare Tax Payable 3 7 0 30
Health Insurance Premiums Payable 3 6 0 02
Idaho Adventures
Adjusted Trial Balance
December 31, 20–
1 3 8 75
11 0 3 9 00
19 4 4 5 00
446 • Working Papers
15-4 ON YOUR OWN (concluded)
ACCOUNT TITLE DEBIT CREDIT
Income Summary
Sales 768 1 9 4 26
Sales Discount 2 4 8 7 16
Credit Card Fee Expense 12 4 4 1 80
Depreciation Expense—Office Equipment
Depreciation Expense—Store Equipment
Insurance Expense
Miscellaneous Expense 6 8 4 7 14
Payroll Taxes Expense 12 9 7 7 15
TE
7 0 2 8 21
4 8 9 0 00
6 9 5 0 00
10 4 0 0 00
Idaho Adventures
Adjusted Trial Balance
December 31, 20–
Name Date Class
15-1 APPLICATION PROBLEM (LO1, 2), p. 465
Preparing adjusting entries for supplies and prepaid insurance
1., 2.
ACCOUNT TITLE DEBIT CREDIT
Supplies—Store 4 1 1 6 25
Prepaid Insurance 14 2 0 0 00
Notes Receivable 4 2 0 0 00
Interest Receivable
Office Equipment 16 4 4 7 21
Store Equipment 42 1 1 5 00
Accumulated Depreciation—Store Equipment 18 4 4 1 48
Accounts Payable 7 5 1 0 94
New England Arts
Unadjusted Trial Balance
December 31, 20–
Accumulated Depreciation—Office Equipment
5 1 9 5 00
448 • Working Papers
15-1 APPLICATION PROBLEM (continued)
ACCOUNT TITLE DEBIT CREDIT
Income Summary
Sales 574 8 0 1 40
Advertising Expense 18 2 0 0 00
Credit Card Fee Expense 8 4 4 5 63
Depreciation Expense—Store Equipment
Insurance Expense
Miscellaneous Expense 8 1 1 4 10
Payroll Taxes Expense 12 9 1 8 25
Rent Expense 18 2 0 0 00
Salary Expense 108 4 7 9 50
TE
Depreciation Expense—Office Equipment
New England Arts
Unadjusted Trial Balance
December 31, 20–
Chapter 15 Preparing Adjusting Entries and a Trial Balance • 449
Name Date Class
15-1, 15-2, 15-3, and 15-4 APPLICATION PROBLEMS, pp. 465–466
15-1 Preparing adjusting entries for supplies and prepaid insurance (LO1, 2)
15-2 Journalizing the adjusting entries for merchandise inventory and interest
receivable (LO3, 4)
15-3 Journalizing the adjusting entries for accumulated depreciation (LO5, 6)
15-4 Preparing the adjusting entry for federal income tax and an adjusted trial
balance (LO7, 8, 9)
GENERAL JOURNAL PAGE 20
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1Adjusting Entries 1
2
20–
Dec. 31 Uncollectible Accounts Expense 4 2 2 5 00 2
3Allowance for Uncollectible Accounts 4 2 2 5 00 3
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
P15-2
P15-3
6165
31 Income Summary 3150 1 9 0 9 10
Merchandise Inventory 1140 1 9 0 9 10
31 Interest Receivable 1175 3 4 65
Interest Income 7110 3 4 65
31 Depreciation Expense—Office Equipment 6120 4 1 5 0 00
Accum. Depreciation—Office Equipment 1210 4 1 5 0 00
31 Depreciation Expense—Store Equipment 6125 6 4 4 0 00
Accum. Depreciation—Store Equipment 1220 6 4 4 0 00
450 • Working Papers
15-3 APPLICATION PROBLEM, p. 465
1.
Original Cost $
Estimated Salvage Value
Estimated Total Depreciation Expense $
2.
Original Cost $
Depreciation: Year 1 $
Year 2
TE
4,700.00
500.00
4,200.00
4,700.00
1,400.00
1,400.00 2,800.00
Chapter 15 Preparing Adjusting Entries and a Trial Balance • 451
Name Date Class
15-4 APPLICATION PROBLEM, p. 466
GENERAL LEDGER
1., 4.
ACCOUNT Merchandise Inventory ACCOUNT NO. 1140
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔85 1 1 4 10
ACCOUNT Supplies—Store ACCOUNT NO. 1150
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔4 1 1 6 25
ACCOUNT Interest Receivable ACCOUNT NO. 1175
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
31 G20 1 9 0 9 10 83 2 0 5 00
31 G20 2 5 6 6 25 1 5 5 0 00
20–
Dec. 31 G20 3 4 65 3 4 65
452 • Working Papers
15-4 APPLICATION PROBLEM (continued)
ACCOUNT Accumulated Depreciation—Office Equipment ACCOUNT NO. 1210
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔5 1 9 5 00
ACCOUNT Federal Income Tax Payable ACCOUNT NO. 2170
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
ACCOUNT Depreciation Expense—Office Equipment ACCOUNT NO. 6120
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
TE
31 G20 4 1 5 0 00 9 3 4 5 00
20–
Dec. 31 G20 1 1 0 2 82 1 1 0 2 82
20–
Dec. 31 G20 4 1 5 0 00 4 1 5 0 00
Chapter 15 Preparing Adjusting Entries and a Trial Balance • 453
Name Date Class
15-4 APPLICATION PROBLEM (continued)
ACCOUNT Insurance Expense ACCOUNT NO. 6130
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
ACCOUNT Supplies Expense—Store ACCOUNT NO. 6160
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
ACCOUNT Federal Income Tax Expense ACCOUNT NO. 6205
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔10 0 0 0 00
20–
Dec. 31 G20 12 2 0 0 00 12 2 0 0 00
20–
Dec. 31 G20 2 5 6 6 25 2 5 6 6 25
31 G20 1 1 0 2 82 11 1 0 2 82