Below is the Trial Balance for Lilake Firm as on 31-Oct-2023, along with additional information. The...

 

Transcribed Image Text:

Below is the Trial Balance for Lilake Firm as on 31-Oct-2023, along with additional information. The firm prepares its financial statement monthly. Lilake Firm Trial Balance 31-Oct-2023 Cash Supplies Prepaid Insurance Equipment Notes Payable Accounts Payable Unearned Revenue Owner's Capital Owner's Drawings Service Revenue Salaries and Wages Expense Rent Expense Total Debit $ 30,400 5,000 1,200 10,000 1,000 8,000 1,800 57400 Credit 10,000 5,000 2,400 20,000 20,000 57400 Additional Information: An inventory count at the close of business on October 31 reveals that $1,700 of supplies are still on hand. - - On October 1, Lilake Firm paid $1,200 for a one-year fire insurance policy. Coverage began on October 1. Lilake Firm recorded the payment by increasing (debiting) Prepaid Insurance. This account shows a balance of $1,200 in the October 31 trial balance. Assume that depreciation on the equipment is $600 a year. The firm paid salaries and wages on October 25; the next payment of salaries will not occur until November 6. The employees receive total salaries of $2,500 for a five-day work week, or $500 per day. Saturday and Sunday are off. Out of $2,400 that was considered as unearned revenue, analysis reveals that the company performed $900 of services in October. The firm performed services worth $350 that were not billed to clients on or before October 31. The firm signed a three-month note payable in the amount of $10,000 on October 1. The note requires Pioneer to pay interest at an annual rate of 10%. Required: a. Prepare the adjusting entries as on 31st Oct, 2023. Show all steps of calculations where needed. b. Post the Journal entries to T-Accounts. c. Prepare the adjusted trial balance. d. Prepare the income statement, statement of owner,s equity, and balance sheet. Below is the Trial Balance for Lilake Firm as on 31-Oct-2023, along with additional information. The firm prepares its financial statement monthly. Lilake Firm Trial Balance 31-Oct-2023 Cash Supplies Prepaid Insurance Equipment Notes Payable Accounts Payable Unearned Revenue Owner's Capital Owner's Drawings Service Revenue Salaries and Wages Expense Rent Expense Total Debit $ 30,400 5,000 1,200 10,000 1,000 8,000 1,800 57400 Credit 10,000 5,000 2,400 20,000 20,000 57400 Additional Information: An inventory count at the close of business on October 31 reveals that $1,700 of supplies are still on hand. - - On October 1, Lilake Firm paid $1,200 for a one-year fire insurance policy. Coverage began on October 1. Lilake Firm recorded the payment by increasing (debiting) Prepaid Insurance. This account shows a balance of $1,200 in the October 31 trial balance. Assume that depreciation on the equipment is $600 a year. The firm paid salaries and wages on October 25; the next payment of salaries will not occur until November 6. The employees receive total salaries of $2,500 for a five-day work week, or $500 per day. Saturday and Sunday are off. Out of $2,400 that was considered as unearned revenue, analysis reveals that the company performed $900 of services in October. The firm performed services worth $350 that were not billed to clients on or before October 31. The firm signed a three-month note payable in the amount of $10,000 on October 1. The note requires Pioneer to pay interest at an annual rate of 10%. Required: a. Prepare the adjusting entries as on 31st Oct, 2023. Show all steps of calculations where needed. b. Post the Journal entries to T-Accounts. c. Prepare the adjusted trial balance. d. Prepare the income statement, statement of owner,s equity, and balance sheet.

Answer rating: 100% (QA)

A Adjusting Entries for Lilake Firm as on 31Oct2023 Adjusting Entry 1 To adjust Supplies to reflect the amount of supplies still on hand Debit Supplies Expense 3300 Credit Supplies 3300 Calculation Be... View the full answer