454 • Working Papers
15-4 APPLICATION PROBLEM (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
579,885.72
64,411.27 50,000.00 14,411.27 25% 3,602.82
Chapter 15 Preparing Adjusting Entries and a Trial Balance • 455
Name Date Class
15-4 APPLICATION PROBLEM (continued)
2., 5., 6.
ACCOUNT TITLE DEBIT CREDIT
Cash 16 4 4 8 28
Petty Cash 3 0 0 00
Interest Receivable
Office Equipment 16 4 4 7 21
Accumulated Depreciation—Office Equipment
Store Equipment 42 1 1 5 00
Accumulated Depreciation—Store Equipment
Accounts Payable 7 5 1 0 94
Sales Tax Payable 2 4 4 8 11
Employee Income Tax Payable—Federal 5 9 0 00
Social Security Tax Payable 1 1 9 1 20
Medicare Tax Payable 2 7 8 59
(Note: Trial balance is continued on the next page.)
New England Arts
Adjusted Trial Balance
December 31, 20–
3 4 65
9 3 4 5 00
24 8 8 1 48
456 • Working Papers
15-4 APPLICATION PROBLEM (concluded)
ACCOUNT TITLE DEBIT CREDIT
Income Summary
Sales 574 8 0 1 40
Depreciation Expense—Office Equipment
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
TE
1 9 0 9 10
4 1 5 0 00
6 4 4 0 00
12 2 0 0 00
New England Arts
Adjusted Trial Balance
December 31. 20–
Chapter 15 Preparing Adjusting Entries and a Trial Balance • 457
Name Date Class
15-M MASTERY PROBLEM (LO2, 3, 4, 6, 7, 8, 9), p. 466
Journalizing adjusting entries and preparing an adjusted trial balance
1., 2., 4., 5.
GENERAL JOURNAL PAGE 16
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
10 10
11 11
12 12
13 13
14 14
15 15
22 22
23 23
24 24
25 25
26 26
27 27
28 28
Adjusting Entries
20–
Dec.31 Uncollectible Accounts Expense 6165 1 1 7 4 40
Allowance for Uncollectible Accounts 1135 1 1 7 4 40
31 Merchandise Inventory 1140 3 9 8 6 50
Income Summary 3150 3 9 8 6 50
31 Interest Receivable 1175 2 1 33
Interest Income 7110 2 1 33
31 Depreciation Expense—Office Equipment 6120 3 6 0 0 00
Accum. Depreciation—Office Equipment 1210 3 6 0 0 00
458 • Working Papers
ACCOUNT TITLE DEBIT CREDIT
Cash 42 4 8 9 25
Petty Cash 2 0 0 00
Accounts Receivable 16 4 1 8 50
Notes Receivable 3 2 0 0 00
Interest Receivable
Office Equipment 12 4 9 1 00
Accumulated Depreciation—Office Equipment
Store Equipment 62 1 9 4 00
Accumulated Depreciation—Store Equipment
Accounts Payable 4 9 8 1 26
Sales Tax Payable 2 1 0 9 05
Employee Income Tax Payable—Federal 7 2 0 00
15-M MASTERY PROBLEM (continued)
3., 6.
(Note: Trial balance is continued on the next page.)
TE
Winterland Rentals
Adjusted Trial Balance
December 31, 20–
2 1 33
8 7 9 5 00
35 3 9 8 00
Chapter 15 Preparing Adjusting Entries and a Trial Balance • 459
Name Date Class
15-M MASTERY PROBLEM (continued)
ACCOUNT TITLE DEBIT CREDIT
Income Summary
Sales 501 8 1 0 98
Credit Card Fee Expense 6 1 4 8 25
Depreciation Expense—Office Equipment
Depreciation Expense—Store Equipment
Insurance Expense
Miscellaneous Expense 12 4 9 5 05
Payroll Taxes Expense 16 2 1 8 18
Rent Expense 24 8 0 0 00
Winterland Rentals
Adjusted Trial Balance
December 31, 20–
3 9 8 6 50
3 6 0 0 00
12 9 5 0 00
14 0 0 0 00
460 • Working Papers
15-M MASTERY PROBLEM (continued)
GENERAL LEDGER
2., 5.
ACCOUNT Allowance for Uncollectible Accounts ACCOUNT NO. 1135
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔2 5 60
ACCOUNT Supplies—Office ACCOUNT NO. 1145
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔4 2 1 9 36
ACCOUNT Prepaid Insurance ACCOUNT NO. 1160
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔17 0 0 0 00
TE
31 G16 1 1 7 4 40 1 2 0 0 00
31 G16 3 1 2 9 36 1 0 9 0 00
31 G16 14 0 0 0 00 3 0 0 0 00
Name Date Class
15-M MASTERY PROBLEM (continued)
ACCOUNT Accumulated Depreciation—Store Equipment ACCOUNT NO. 1220
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔22 4 4 8 00
ACCOUNT Income Summary ACCOUNT NO. 3150
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
ACCOUNT Depreciation Expense—Store Equipment ACCOUNT NO. 6125
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
31 G16 12 9 5 0 00 35 3 9 8 00
20–
Dec. 31 G16 3 9 8 6 50 3 9 8 6 50
20–
Dec. 31 G16 12 9 5 0 00 12 9 5 0 00
462 • Working Papers
15-M MASTERY PROBLEM (continued)
ACCOUNT Supplies Expense—Office ACCOUNT NO. 6155
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
ACCOUNT Uncollectible Accounts Expense ACCOUNT NO. 6165
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
ACCOUNT Interest Income ACCOUNT NO. 7110
DATE ITEM POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔2 1 4 00
TE
20–
Dec. 31 G16 3 1 2 9 36 3 1 2 9 36
20–
Dec. 31 G16 1 1 7 4 40 1 1 7 4 40
31 G16 2 1 33 2 3 5 33
Chapter 15 Preparing Adjusting Entries and a Trial Balance • 463
Name Date Class
15-M MASTERY PROBLEM (concluded)
4.
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
excluding federal income tax …………………………………………..
Equals net income before federal income tax …………………….. $
512,271.46
128,859.90
383,411.56
464 • Working Papers
15-C CHALLENGE PROBLEM (LO2, 8), p. 467
Journalizing adjusting entries
1., 2., 3.
GENERAL JOURNAL PAGE 16
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
TE
Adjusting Entries
20–
Dec.31 Allowance for Uncollectible Accounts 2 0 1 0 00