Allesnik Advertising Agency was founded in January 2017. Presented here are both the adjusted and unadjusted trial
Question:
Allesnik Advertising Agency was founded in January 2017. Presented here are both the adjusted and unadjusted trial balances as of December 31, 2017.
ALLESNIK ADVERTISING AGENCY
Trial Balance
December 31, 2017
|
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| Unadjusted |
|
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| Adjusted |
| |||||||||||||
Cash |
|
| Dr. |
|
|
|
| Cr. |
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| Dr. |
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|
|
| Cr. |
| |||
$ | 11,000 |
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| $ | 11,000 |
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|
|
|
| |||
Accounts Receivable |
|
| 16,000 |
|
|
|
|
|
|
|
|
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| 19,000 |
|
|
|
|
|
|
|
Supplies |
|
| 9,400 |
|
|
|
|
|
|
|
|
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| 7,000 |
|
|
|
|
|
|
|
Prepaid Insurance |
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| 3,350 |
|
|
|
|
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|
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| 1,790 |
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|
|
|
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Equipment |
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| 60,000 |
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|
|
|
|
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|
|
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| 60,000 |
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|
|
|
|
|
Accumulated Depreciation— |
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|
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Equipment |
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|
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| $ | 25,000 |
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|
|
|
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| $ | 30,000 |
| ||||||
Notes Payable |
|
|
|
|
|
|
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| 8,000 |
|
|
|
|
|
|
|
|
|
| 8,000 |
|
Accounts Payable |
|
|
|
|
|
|
|
| 2,000 |
|
|
|
|
|
|
|
|
|
| 2,000 |
|
Interest Payable |
|
|
|
|
|
|
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| 0 |
|
|
|
|
|
|
|
|
|
| 560 |
|
Unearned Service Revenue |
|
|
|
|
|
|
|
| 5,000 |
|
|
|
|
|
|
|
|
|
| 3,100 |
|
Salaries and Wages Payable |
|
|
|
|
|
|
|
| 0 |
|
|
|
|
|
|
|
|
|
| 820 |
|
Common Stock |
|
|
|
|
|
|
|
| 20,000 |
|
|
|
|
|
|
|
|
|
| 20,000 |
|
Retained Earnings |
|
|
|
|
|
|
|
| 5,500 |
|
|
|
|
|
|
|
|
|
| 5,500 |
|
Dividends |
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| 10,000 |
|
|
|
|
|
|
|
|
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| 10,000 |
|
|
|
|
|
|
|
Service Revenue |
|
|
|
|
|
|
|
| 57,600 |
|
|
|
|
|
|
|
|
|
| 62,500 |
|
Salaries and Wages Expense |
|
| 9,000 |
|
|
|
|
|
|
|
|
|
| 9,820 |
|
|
|
|
|
|
|
Insurance Expense |
|
|
|
|
|
|
|
|
|
|
|
|
| 1,560 |
|
|
|
|
|
|
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
| 560 |
|
|
|
|
|
|
|
Depreciation Expense |
|
|
|
|
|
|
|
|
|
|
|
|
| 5,000 |
|
|
|
|
|
|
|
Supplies Expense |
|
|
|
|
|
|
|
|
|
|
|
|
| 2,400 |
|
|
|
|
|
|
|
Rent Expense |
|
| 4,350 |
|
|
|
|
|
|
|
|
|
| 4,350 |
|
|
|
|
|
|
|
|
| $ | 123,100 |
| $ | 123,100 |
|
| $ | 132,480 |
| $ | 132,480 |
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Instructions:
(a) Journalize the annual adjusting entries that were made.
(b) Prepare an income statement and a retained earnings statement for the year ended December 31, and a classified balance sheet at December 31.
Intermediate Accounting 2014 FASB Update
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield