Chapter 15 Preparing Adjusting Entries and a Trial Balance • 53
Name Date Class
15-R RECYCLING PROBLEM (LO2, 3, 4, 6, 7, 8, 9)
Journalizing adjusting entries and preparing an adjusted trial balance
1., 2., 4., 5.
GENERAL JOURNAL PAGE 18
DATE ACCOUNT TITLE DOC.
NO. POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
Adjusting Entries
20–
Dec. 31 Uncollectible Accounts Expense 6165 8 0 9 28
Allowance for Uncollectible Accounts 1135 8 0 9 28
31 Supplies Expense—Office 6155 3 8 0 3 23
Supplies—Office 1145 3 8 0 3 23
31 Supplies Expense—Store 6160 5 1 8 3 83
Supplies—Store 1150 5 1 8 3 83
31 Insurance Expense 6130 18 0 0 0 00
Prepaid Insurance 1160 18 0 0 0 00
15-R RECYCLING PROBLEM (continued)
3., 6., 7.
ACCOUNT TITLE DEBIT CREDIT
Cash 50 9 8 7 10
Petty Cash 2 4 0 00
Accounts Receivable 19 7 0 2 20
Interest Receivable
Office Equipment 14 9 8 9 20
Accumulated Depreciation—Office Equipment
Store Equipment 74 6 3 2 80
Accumulated Depreciation—Store Equipment
Accounts Payable 5 9 7 7 51
Sales Tax Payable 2 5 3 0 86
Employee Income Tax Payable—Federal 8 6 4 00
Social Security Tax Payable 1 8 3 0 00
Medicare Tax Payable 4 2 8 18
Health Insurance Premiums Payable 4 1 6 30
(Note: Trial balance is continued on the next page.)
54 • Recycling Problem Working Papers
Adjusted Trial Balance
December 31, 20–
3 9 25
36 3 5 7 00
9 6 8 4 00
Northern Outlets
TE
Name Date Class
15-R RECYCLING PROBLEM (continued)
ACCOUNT TITLE DEBIT CREDIT
Income Summary
Sales 602 1 7 3 18
Advertising Expense 7 4 4 0 00
Credit Card Fee Expense 7 3 7 7 90
Depreciation Expense—Office Equipment
Depreciation Expense—Store Equipment
Insurance Expense
Miscellaneous Expense 14 9 9 4 06
Payroll Taxes Expense 19 4 6 1 82
Rent Expense 29 7 6 0 00
Northern Outlets
Adjusted Trial Balance
December 31, 20–
3 4 5 0 00
9 4 2 0 00
18 0 0 0 00
1 9 7 1 80
56 • Recycling Problem Working Papers
15-R RECYCLING 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 ✔3 0 72
ACCOUNT Supplies—Office ACCOUNT NO. 1145
DATE ITEM POST.
REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔5 0 6 3 23
ACCOUNT Prepaid Insurance ACCOUNT NO. 1160
DATE ITEM POST.
REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔20 4 0 0 00
TE
31 G18 8 0 9 28 8 4 0 00
31 G18 3 8 0 3 23 1 2 6 0 00
31 G18 18 0 0 0 00 2 4 0 0 00
Chapter 15 Preparing Adjusting Entries and a Trial Balance • 57
Name Date Class
15-R RECYCLING PROBLEM (continued)
ACCOUNT Accumulated Depreciation—Office Equipment ACCOUNT NO. 1210
DATE ITEM POST.
REF. DEBIT CREDIT BALANCE
DEBIT CREDIT
20–
Dec. 1 Balance ✔6 2 3 4 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
31 G18 3 4 5 0 00 9 6 8 4 00
20–
Dec. 31 G18 4 9 1 8 96 4 9 1 8 96
20–
Dec. 31 G18 3 4 5 0 00 3 4 5 0 00
58 • Recycling Problem Working Papers
15-R RECYCLING 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 5 6 80
TE
20–
Dec. 31 G18 3 8 0 3 23 3 8 0 3 23
20–
Dec. 31 G18 8 0 9 28 8 0 9 28
31 G18 3 9 25 2 9 6 05
Chapter 15 Preparing Adjusting Entries and a Trial Balance • 59
Name Date Class
15-R RECYCLING 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 ……………………………………………..
453,801.87
611,927.41
158,125.54 100,000.00 58,125.54 39% 22,668.96
