1. Tara estimates that the BUILDING will Depreciate at a rate of $12,000 per year and the Equipment at a rate of $4,000 per year . Record the Depreciation for the year for both the Building and Equipment.

 

1. Tara determines that 40% of the Unearned Revenue has now been earned by year end:

 

$22.000 x 40% = $8,800

 

3.  The ending (UNUSED) Supplies value is estimated to be $3,800.-$8,000 = $4,200

 

4.  Tara realizes she neglected (FORGOT...OOPS) to record interest revenue of $8,900 that was earned but not yet RECEIVED by Dec 31^st.

 

5.  The Prepaid Insurance Policy is for 12 months dated July 1^st, 2022...record the adjustment for 6 months ending Dec 31^st 2022. $24,000/12 Mos = $2,000 x 6 months = $12,000 used up

 

6.  Tara has not yet paid $3,450 to her employees for salaries owed but not yet paid (Payable)  at the end of the month of Dec 31^st 2023.

REQUIRED:  Record the Adjustments in the Journal...all accounts needed are included in the Trial Balance

 

 

1. Keira's Kitten Company had the following transactions for the month of July....their 1st month of operation:

 

a.   Keira invests $150,000 of her own cash in the company as a GIFT for STOCK

b. Keira purchases $4,200 of Office Supplies on Account Payable

c.  Keira borrows $510,000 in Cash from the bank on a long-term Note Payable for 5 years.

d.   Keira purchases a BUILDING for $200,000 paying $60,000 in cash and borrowing the remaining $140,000 on a Mortgage Payable

e.  Keira earns $34,000 in Revenue on Account Receivable

f.   Keira pays salaries of $3,750

g.  Keira Pays a DIVIDEND of  $650 in cash.

 

 

 

 

Chart of Accounts:

 

ASSETS:

Cash, Accounts Receivable, Office Supplies, Building

 

Liabilities:

Bank Note Payable, Mortgage Payable

 

Owner's Equity:

 STOCK, 

DIVIDEND 

Revenue, 

Salary Expense

 

Required:

Analyze the Transactions and Record them in the Journal 

Post from the Journal to the Ledgers

Prepare a Trial Balance

Transcribed Image Text:

1. Pip's Puppy Company has the following UNADJUSTED Trial Balance at Year End: Pip's Puppy Company Trial Balance DEC 31, 2023 Cash Accounts Receivable Inventory Supplies Prepaid Insurance Land Building Accum Dep-Building Equipment Accum Dep-Equipment Accounts Payable Unearned Revenue Interest Payable$0Salary Payable Mortgage Payable Tara's Capital Tara's Drawing Service Revenue Rent Expense Salary Expense Interest Expense Depreciation Expense-Blg Depreciation Exp Equip Insurance Expense Supplies Expense Total Debit $12,500 $25,000 $40,000 $8,000 $24,000 $50,000 $145,000 $80,000 $4,000 $3,000 $15,000 $0 $0 $0 $0 $0 $406,500 Additional Data Needed for Adjustments: Credit $0 $0 $109,500 $22,000 $0 $50,000 $150,000 $75,000 $406,500 1. Pip's Puppy Company has the following UNADJUSTED Trial Balance at Year End: Pip's Puppy Company Trial Balance DEC 31, 2023 Cash Accounts Receivable Inventory Supplies Prepaid Insurance Land Building Accum Dep-Building Equipment Accum Dep-Equipment Accounts Payable Unearned Revenue Interest Payable$0Salary Payable Mortgage Payable Tara's Capital Tara's Drawing Service Revenue Rent Expense Salary Expense Interest Expense Depreciation Expense-Blg Depreciation Exp Equip Insurance Expense Supplies Expense Total Debit $12,500 $25,000 $40,000 $8,000 $24,000 $50,000 $145,000 $80,000 $4,000 $3,000 $15,000 $0 $0 $0 $0 $0 $406,500 Additional Data Needed for Adjustments: Credit $0 $0 $109,500 $22,000 $0 $50,000 $150,000 $75,000 $406,500

Answer rating: 100% (QA)

Here are the journal entries for the additional data and transactions for Pips Puppy Company and Kei... View the full answer