a. Wages & salaries earned by employees at the end of December but not yet paid amount to $4,000. 

b.Office supplies on hand at December 31st amounted to $8,653 

c. The company automobiles are depreciated at a rate of $30,000 per year. 

d. The building is depreciated at a rate of $10,000 per year. 

e. The company has purchased a three-year prepaid insurance contract to cover the maintenance of its automobile fleet.  The remaining dollar value of the contract expired this year. 

f. Client services provided but not yet recorded at year-end totaled $16,000, net of allowance for doubtful accounts. 

g.The company makes annual interest payments each June 30th on the entire mortgage payable of $100,000.  The mortgage interest rate is 6%.  Make the necessary adjustment for the last half of the year.  HINT:  The interest accrual amount is $3,000.  

Required

1.Make the necessary adjustments  and develop an adjusted trial balance.

2.Based upon the Adjusted Trial Balance generate an Income Statement, Statement of Owner's Equity and Balance Sheet, all in good order and form.

Transcribed Image Text:

Saguaro Home Health Unadjusted Trial Balance December 31, 20XX Cash Accounts Receivable, net Medical Supplies Prepaid Insurance Automobiles Accum. Depreciation, Automobiles Building Accum. Depreciation, Building Accounts Payable Mortgage payable Saguaro Capital Medical Services Revenue Salary & Wages Expense Gasoline Expense Utilities Expense Interest Expense Withdrawals Totals $ Debit 77,400 151,000 73,000 3,000 90,000 200,000 288,000 137, 500 12,000 0 10,000 $1,041, 900 Credit 60,000 50,000 32,000 100, 000 249, 900 550,000 $1,041, 900 Saguaro Home Health Unadjusted Trial Balance December 31, 20XX Cash Accounts Receivable, net Medical Supplies Prepaid Insurance Automobiles Accum. Depreciation, Automobiles Building Accum. Depreciation, Building Accounts Payable Mortgage payable Saguaro Capital Medical Services Revenue Salary & Wages Expense Gasoline Expense Utilities Expense Interest Expense Withdrawals Totals $ Debit 77,400 151,000 73,000 3,000 90,000 200,000 288,000 137, 500 12,000 0 10,000 $1,041, 900 Credit 60,000 50,000 32,000 100, 000 249, 900 550,000 $1,041, 900

Answer rating: 100% (QA)

Based on the unadjusted trial balance and the adjustments provided we will make journal entries for each of the adjustments and then update the trial balance Here are the necessary journal entries a W... View the full answer