Utilize the Chart of Accounts listed below to answer questions A, B, and C.

Green has the following accounts in its General Ledger:

Cash Accounts Payable Retained Earnings

Supplies Wages Payable Service Revenue

Inventory Unearned Service Revenue Supplies Expense

Prepaid Maintenance Unearned Maintenance Revenue Maintenance Expense

Equipment Notes Payable Wages Expense

Accumulated Depreciation Common Stock Depreciation Expense

A. On March 1, 2013 Green Company purchased $12,500 of office supplies. On that date Green recorded the supplies purchase transaction as follows:

Dr. Cr.

Supplies 12,500

Cash 12,500

The entry above is the only entry Green has made related to this item. The balance was zero in the Supplies account prior to the above entry.

On March 31, 2013 Green counted the office supplies and determined there was $9,300

In the General Journal below record the required March 31, 2013 adjusting journal entry.

Account Name	Debit	Credit

B. Green’s employees are paid in cash each Friday for that week’s work and the payment of the payroll is recorded in the accounting system. The last payday of March was on Friday March 26.

The employees worked on Monday March 29^th, Tuesday March 30^th, and Wednesday March 31^st. The employees earned a total of $1,200for these last three days of March.

In the General Journal below record the required March 31 adjusting journal entry.

Account Name	Debit	Credit

C. On March 1, 2013 Green Company purchased a new piece of equipment for $210,000cash. On March 1 Green recorded the equipment purchase with a Debit to the Equipment account and a Credit to the Cash account. Green estimates that the equipment will last 7years. Green also estimates that at the end of 7 years the equipment will have no future value and will be scrapped. Green uses the straight-line depreciation method.

In the General Journal below record the required March 31, 2013 adjusting journal entry for March’s depreciation of the equipment.

Account Name	Debit	Credit

Question.

Before closing the revenue and expense accounts for the month of June ABC Company’s Retained Earnings Account had a $50,000credit balance. ABC’s Net Income for June was $2,000. ABC declared and paid a $5,000dividend in June. The June beginning balance in ABC’s Cash Account was $35,000and the June ending balance in the Cash Account was $25,000. The Retained Earnings amount shown on ABC’s June 30^th Balance Sheet should be:

Answer rating: 100% (QA)

To determine the Retained Earnings amount shown on ABC Companys June 30th Balance Sheet we need to c... View the full answer