The general ledger for Ryans Canoe Rentals shows the following account balances on December 31, the end
Question:
The general ledger for Ryan’s Canoe Rentals shows the following account balances on December 31, the end of the fiscal period.
Instructions
In your working papers:
1. Prepare the Trial Balance section of the work sheet. The account names are entered on the work sheet.
2. Enter the adjustments for Office Supplies and Prepaid Insurance in the Adjustments section. The data for the adjustments is as follows:
a. Ryan’s determines that 20 percent of the supplies purchased are still on hand on December 31.
b. The insurance premium expired is $1,337.
3. Extend the amounts and complete the Adjusted Trial Balance section.
4. Extend the appropriate amounts to the Balance Sheet and Income Statement sections and determine the net income or net loss for the period.
Step by Step Answer: