Myrna & Co. is a manufacturer of various types of dyes for industrial use. Following is...

 

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Myrna & Co. is a manufacturer of various types of dyes for industrial use. Following is the unadjusted trial balance as on 31 August, 2015: Unadjusted Trial Balance Account Cash Prepaid Insurance Supplies Land Building Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Share capital Dividends Rent revenue Salaries and wages expense Utilities expenses Maintenance and repairs expense Total Debit 19.600.00 4,500.00 2,600.00 20,000.00 120,000.00 16,000.00 5,000.00 44,800.00 9,200.00 3,600.00 Credit 4,500.00 4,600.00 50,000.00 100,000.00 86,200.00 245,300.00 245,300.00 Additional information for adjustments: 1. The balance in prepaid insurance is a one-year premium paid on 1 June 2015. 2. An inventory count on 31 August shows 650 of supplies on hand. 3. Annual depreciation rates are 4% for buildings and 10% for equipment. Salvage value of both is estimated to be 10% of cost each. Both assets were purchased on 1 June 2015. 4. Unearned Rent Revenue of 3,800 was earned prior to 31 August. 5. Salaries of 375 were unpaid at 31 August. 6. Rentals of 800 were due from tenants at 31August. 7. The mortgage interest rate is 8% per year. The mortgage dated 1 June 2015. Prepare the following: 1. Adjusting Entries 2. Adjusted Trial balance 3. Prepare the Closing entries 4. Prepare the Balance Sheet 5. Prepare the Income Statement Myrna & Co. is a manufacturer of various types of dyes for industrial use. Following is the unadjusted trial balance as on 31 August, 2015: Unadjusted Trial Balance Account Cash Prepaid Insurance Supplies Land Building Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Share capital Dividends Rent revenue Salaries and wages expense Utilities expenses Maintenance and repairs expense Total Debit 19.600.00 4,500.00 2,600.00 20,000.00 120,000.00 16,000.00 5,000.00 44,800.00 9,200.00 3,600.00 Credit 4,500.00 4,600.00 50,000.00 100,000.00 86,200.00 245,300.00 245,300.00 Additional information for adjustments: 1. The balance in prepaid insurance is a one-year premium paid on 1 June 2015. 2. An inventory count on 31 August shows 650 of supplies on hand. 3. Annual depreciation rates are 4% for buildings and 10% for equipment. Salvage value of both is estimated to be 10% of cost each. Both assets were purchased on 1 June 2015. 4. Unearned Rent Revenue of 3,800 was earned prior to 31 August. 5. Salaries of 375 were unpaid at 31 August. 6. Rentals of 800 were due from tenants at 31August. 7. The mortgage interest rate is 8% per year. The mortgage dated 1 June 2015. Prepare the following: 1. Adjusting Entries 2. Adjusted Trial balance 3. Prepare the Closing entries 4. Prepare the Balance Sheet 5. Prepare the Income Statement

Answer rating: 100% (QA)

1 Adjusting Entries Prepaid Insurance Debit Prepaid Insurance 3750 Credit Insurance Expense 750 Supplies Debit Supplies Expense 2600 Credit Supplies 2... View the full answer