$ 13,786
2,780
11,000
19,387
15,000
60,865
Retained Earnings
Dividends
Income Taxes Payable
Common Stock
Service Revenue
Cash
Chapter 3, P 8. (Continued)
3. Adjusted trial balance prepared
December 31, 2011
Sigma Consultants Corporation
Adjusted Trial Balance
a.
b.
c.
Chapter 3, P 8. (Continued)
4. User Insight: The following financial statements are affected by the adjustments:
Balance sheet, income statement, statement of retained earnings
Balance sheet, income statement, statement of retained earnings
Balance sheet, income statement, statement of retained earnings
142
Bal. 195 (b) 130
Bal. 65
Bal
.
3,300 Bal. 3,117 Bal. 4,200
Bal
.
20,079 Bal. 8,300 Bal. 585
(e) 315
970
Bal. Bal.3,650
Chapter 3, P 9.
Cash Accounts Receivable Prepaid Insurance
2. Adjusting entries posted to the accounts
1. T accounts set up and balances entered
Accumulated Depreciation—
Common Stock Retained Earnings Dividends
Advertising ExpenseOffice Salaries ExpenseTravel Fees Revenue
.
4,200
20,394
8,300
585
2,350
Advertising Expense
Dividends
Office Salaries Expense
Chapter 3, P 9. (Continued)
December 31, 2011
Angel Travel, Inc.
Adjusted Trial Balance
3. Adjusted trial balance, income statement, statement of retained earnings,
and balance sheet prepared
Travel Fees Revenue
Rent Expense
$20,394
$8,300
2,385
2,350
$ 5,108
$3,117
Chapter 3, P 9. (Continued)
Angel Travel, Inc.
Income Statement
For the Year Ended December 31, 2011
Income taxes expense
Rent expense
Net income
Expenses
Office salaries expense
Revenue
Travel fees revenue
Angel Travel, Inc.
Statement of Retained Earnings
For the Year Ended December 31, 2011
Retained earnings, December 31, 2010
145
$ 3,650
970
$ 635
2,385
$ 3,020
$3,300
Common stock
4. User Insight: The effect of adjusting entries discussed
By definition, adjusting entries cannot include a debit or a credit to Cash. Because
Income taxes payable
Balance Sheet
Accounts payable
Accounts receivable
Total liabilities
Liabilities
Stockholders’ Equity
Cash
Chapter 3, P 9. (Continued)
Angel Travel, Inc.
December 31, 2011
Assets
Page 14
Post.
Ref. Debit Credit
2011
a. June 30 514 11,000
117 11,000
d. 30 516 12,520
141 12,520
$15,100 – = $12,520
g. 30 212 15,965
411 15,965
$29,500 – = $15,965
h. 30 520 12,980
1. Adjusting entries recorded in the general journal
Spare Parts Expense
General Journal
To record spare parts used during
Date
$2,580
the year
Spare Parts
Unearned Service Revenue
$13,535
Income Taxes Expense
Description
Chapter 3, P 10.
Prepaid Rent
Rent Expense
To expense one year’s rent paid in
advance
To recognize service revenue earned
Service Revenue
147
30 13,270
Ref. Debit Credit Debit Credit
30 11,000
30 J14 11,000 —
3. Adjusting entries posted from the general journal
2. Ledger accounts opened and balances recorded
Adjustment
Balance
Prepaid Rent
ItemDate
BalanceJune
2011
Balance
Account No. 117
Post.
June
Chapter 3, P 10. (Continued)
Cash
Account No. 111
Account No. 118
Prepaid Insurance
148
Ref. Debit Credit Debit Credit
30 190,000
Ref. Debit Credit Debit Credit
30 29,500
30 J14 15,965 13,535
Ref. Debit Credit Debit Credit
Spare Parts Account No. 141
Adjustment
Post.
Date Item
Balance
2011
June Balance
Account No. 143
Chapter 3, P 10. (Continued)
Account No. 213
Post.
Interest Payable
Unearned Service Revenue Account No. 212
Balance
Accumulated Depreciation—Vehicles
ItemDate
Account No. 142Vehicles
Post.
Date Item
Balance
2011
June Balance
149
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
30 53,650
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
30 95,600
Post.
2011
ItemDate
ItemDate
Retained Earnings
Post.
Gas and Oil Expense
2011
June Balance
Balance
BalanceJune
Account No. 511
Post.
Account No. 312
Chapter 3, P 10. (Continued)
Balance
Post.
Dividends Account No. 313
Date Item
Balance
Income Taxes Payable Account No. 214
Date Item
Balance
150
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
30 21,200
Ref. Debit Credit Debit Credit
30 J14 12,520 12,520
Ref. Debit Credit Debit Credit
Account No. 516
Advertising Expense Account No. 513
Date
2011
Post.
Spare Parts Expense
Date Item
Date Item
Balance
Chapter 3, P 10. (Continued)
Depreciation Expense—Vehicles Account No. 517
June Adjustment
Post. Balance
Balance
Post.
June Balance
Item
2011
Salaries Expense Account No. 512
Item
Post.
Date
Balance
151