The Trial balance of the Francis Nangle Travel Company on June 1, 2014, lists the entitys beginning
Question:
The Trial balance of the Francis Nangle Travel Company on June 1, 2014, lists the entity’s beginning balances of assets, liabilities, and equity on that date. The company prepares financial statements monthly.
Accounts | Debit | Credit |
|---|---|---|
Cash | 42.000 | |
Accounts receivable | 15.000 | |
Prepaid Insurance | 0 | |
Office Supplies | 19.000 | |
Building | 25.000 | |
Accumulated depreciation | 13.000 | |
Accounts payable | 28.000 | |
Salaries payable | 4.000 | |
Unearned service revenue | 2.000 | |
Capital | 54.000 | |
Drawings | ||
Service Revenue | ||
Rent expense | ||
Supplies Expense | ||
Depreciation Expense | ||
Salary Expense | ||
Total | 101.000 | 101.000 |
Francis Nangle Travel Company completed the following transactions during June;
June 1. Paid $8,000 cash for a building.
June 1. Paid insurance in advance for June through December (7 months) is $4,200
June 3. Performed services for customers and received cash, $9,000
June 5. Performed services on account for $5.000
June 7: Paid salary payable, $4,000
June 10. Collected in advance $7.500 for the service to be performed later.
June 15. Collected $12,000 cash from a customer on account
June 20. Owner withdraw cash of $4.200
June 30. Paid $8.000 cash on account
The adjustment data are given on June 30;
a) Office supplies used during June is $12,000
b) Depreciation expense on the building for the month is $5,600
c) Unearned service revenue earned during June, $5,000
d) Record prepaid insurance expired (see June 1)
e) Accrued salary expense is $1.500
Requirements:
1. Record each transaction that occurred during June in the Journal. Key each transaction by its date. Post the transactions to the T-accounts that you recorded. (Open T-accounts for each of the accounts given in the trial balance, do not forget to write beginning balances)
2. Prepare an unadjusted trial balance
3. Journalize and post adjusting entries.
4. Prepare an adjusted trial balance on the same worksheet made for the unadjusted trial balance
5. Francis Nangle Travel Company’s income statement for the period (June 1-June 30), statement of owners’ equity for the month ended June 30, 2013, and balance sheet on that date
Expert Answer:
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
