Corvallis B&B started operations (and incorporated) on September 1, 2020. J. Qwerty is the owner of...

Transcribed Image Text:

Corvallis B&B started operations (and incorporated) on September 1, 2020. J. Qwerty is the owner of the Corvallis B&B and she used QuickBooks to print out the following trial balance at month end. Corvallis B&B Unadjusted Trial Balance September 30, 2020 Debit Credit Cash 2,500 Supplies 2,600 Prepaid Insurance 1,800 Land 15,000 70,000 Buildings Equipment 16,800 Accounts Payable 4,700 Unearned Rent Revenue 3,300 Mortgage Payable 36,000 Common Stock 60,000 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense 500 113,000 113,000 J. Qwerty visited her accountant on October 1st and said that in order to acquire a future loan that fully-adjusted financial statements were needed by the bank. The following facts about unrecorded adjustments emerged from a conversation between J. Qwerty and the accountant. Insurance expires at the rate of $450 per month. (Premium was paid September 1st.) A count of supplies shows $1,050 of unused supplies on September 30th. Annual depreciation is $3,600 on the building and $3,000 on equipment. The mortgage interest rate is 6%. (The mortgage was taken out on September 1st.) Unearned rent of $2,500 has been earned. Salaries of $900 are accrued and unpaid at September 30th. REQUIRED - USE GOOD FORM in your work that is prepared electronically and presented for grading. See examples in book for 'good form.' 1. Journalize the adjustments. 2. Prepare a Ten-Column worksheet that reflects the financial transactions of Corvallis B&B for September 2020. Page 3-47 in your textbook shows a properly formatted 10-column worksheet. 3. Prepare an income statement and a retained earnings statement for the month of September and a classified balance sheet at September 30th. 1 234567 8 9 10 11 12 13 14 15 16 17 A Account Titles E F Corvallis B&B Ten-Column Worksheet For the Year Ended September 30th 2020 Adjusted Adjustments Trial Balance Dr. Cr. Dr. Cr. B Trial Balance Dr. Cr. H Incme Statement Dr. Cr. J Balance Sheet Dr. K Cr. L Corvallis B&B started operations (and incorporated) on September 1, 2020. J. Qwerty is the owner of the Corvallis B&B and she used QuickBooks to print out the following trial balance at month end. Corvallis B&B Unadjusted Trial Balance September 30, 2020 Debit Credit Cash 2,500 Supplies 2,600 Prepaid Insurance 1,800 Land 15,000 70,000 Buildings Equipment 16,800 Accounts Payable 4,700 Unearned Rent Revenue 3,300 Mortgage Payable 36,000 Common Stock 60,000 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense 500 113,000 113,000 J. Qwerty visited her accountant on October 1st and said that in order to acquire a future loan that fully-adjusted financial statements were needed by the bank. The following facts about unrecorded adjustments emerged from a conversation between J. Qwerty and the accountant. Insurance expires at the rate of $450 per month. (Premium was paid September 1st.) A count of supplies shows $1,050 of unused supplies on September 30th. Annual depreciation is $3,600 on the building and $3,000 on equipment. The mortgage interest rate is 6%. (The mortgage was taken out on September 1st.) Unearned rent of $2,500 has been earned. Salaries of $900 are accrued and unpaid at September 30th. REQUIRED - USE GOOD FORM in your work that is prepared electronically and presented for grading. See examples in book for 'good form.' 1. Journalize the adjustments. 2. Prepare a Ten-Column worksheet that reflects the financial transactions of Corvallis B&B for September 2020. Page 3-47 in your textbook shows a properly formatted 10-column worksheet. 3. Prepare an income statement and a retained earnings statement for the month of September and a classified balance sheet at September 30th. 1 234567 8 9 10 11 12 13 14 15 16 17 A Account Titles E F Corvallis B&B Ten-Column Worksheet For the Year Ended September 30th 2020 Adjusted Adjustments Trial Balance Dr. Cr. Dr. Cr. B Trial Balance Dr. Cr. H Incme Statement Dr. Cr. J Balance Sheet Dr. K Cr. L

Answer rating: 100% (QA)

No Account Titles and Explanation Debit Credit 1 Insurance Expense 450 Prepaid Insurance 450 2 Suppl... View the full answer