The general ledger for Ryan’s Canoe Rentals shows the following account balances on December 31, the end of the fiscal period.

Instructions 

In your working papers:

1. Prepare the Trial Balance section of the work sheet. The account names are entered on the work sheet.

2. Enter the adjustments for Office Supplies and Prepaid Insurance in the Adjustments section. The data for the adjustments is as follows:

a. Ryan’s determines that 20 percent of the supplies purchased are still on hand on December 31.

b. The insurance premium expired is $1,337.

3. Extend the amounts and complete the Adjusted Trial Balance section.

4. Extend the appropriate amounts to the Balance Sheet and Income Statement sections and determine the net income or net loss for the period.

Transcribed Image Text:

101 Cash in Bank 105 Accts. Rec.-Nancy Burrows 110 Accts. Rec.-Patrick Chang 115 Supplies 120 Prepaid Insurance 125 Office Equipment 130 Rental Equipment 135 Canoes 201 Accts. Pay. South Canoe Co. 205 Accts. Pay.-H & T Advertising 210 Accts. Pay. Cassidy's Equipment 301 Ryan Gillespie, Capital 305 Ryan Gillespie, Withdrawals 310 Income Summary 401 Rental Revenue 402 Lesson Revenue 501 Advertising Expense 505 Insurance Expense 510 Maintenance Expense 515 Rent Expense 520 Supplies Expense 525 Utilities Expense $13,826 803 519 2,880 2,292 3,117 14,204 20,182 6,991 2,046 855 38,619 3,700 31,624 3,475 2,730 - 1,664 14,900 2,793