Mr. Taico has started its business Taico Plus on 1 June, 2020. Following are the unadjusted...

 

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Mr. Taico has started its business Taico Plus on 1 June, 2020. Following are the unadjusted data of the business. Account Titles Cash Taico Plus Trial Balance 31st August,2020 Accounts Receivable Supplies Prepaid insurance Furniture & Fixture Equipment Cottage Accu. Dep-Cottage Accounts Payable Utilities payable Mortgage Payable Capital Drawing Service revenue Unearned service revenue Rent expense Salaries expense Utilities Expense Supplies expense Depreciation expense 20,000 22,000 45,000 12,000 9000 2000 539000 Debit $ 20,000 26,000 35,000 48,000 100,000 160,000 40,000 45,000 92000 539,000 Credit $ 2000 90,000 37,000 4. Classified Balance Sheet as of August 31, 2020. 5 5. Pass Closing Entry 4 50,000 223,000 The following additional information should be considered for adjusting entries: a) Furniture, Equipment and Cottage all three have Useful life of 10 years. b) Supplies of $5,000 are still on hand at 31 December. Unearned revenue of $18000 has been earned in August. d) Insurance policy is for 3 years. e) Salary expense incurred but not paid in cash $10,000. (f) Mortgage was taken out on 1st May 2020. Interest rate was 10%. Requirements: 1. Pass adjusting entries. 6 2. prepare adjusted trial balance 4 3. Income statement for the quarter. 3 Mr. Taico has started its business Taico Plus on 1 June, 2020. Following are the unadjusted data of the business. Account Titles Cash Taico Plus Trial Balance 31st August,2020 Accounts Receivable Supplies Prepaid insurance Furniture & Fixture Equipment Cottage Accu. Dep-Cottage Accounts Payable Utilities payable Mortgage Payable Capital Drawing Service revenue Unearned service revenue Rent expense Salaries expense Utilities Expense Supplies expense Depreciation expense 20,000 22,000 45,000 12,000 9000 2000 539000 Debit $ 20,000 26,000 35,000 48,000 100,000 160,000 40,000 45,000 92000 539,000 Credit $ 2000 90,000 37,000 4. Classified Balance Sheet as of August 31, 2020. 5 5. Pass Closing Entry 4 50,000 223,000 The following additional information should be considered for adjusting entries: a) Furniture, Equipment and Cottage all three have Useful life of 10 years. b) Supplies of $5,000 are still on hand at 31 December. Unearned revenue of $18000 has been earned in August. d) Insurance policy is for 3 years. e) Salary expense incurred but not paid in cash $10,000. (f) Mortgage was taken out on 1st May 2020. Interest rate was 10%. Requirements: 1. Pass adjusting entries. 6 2. prepare adjusted trial balance 4 3. Income statement for the quarter. 3

Answer rating: 100% (QA)

1 Adjusting entries a Depreciation Expense Debit Depreciation Expense Furniture Fixtures 100000 10 years 812 6667 Credit Accumulated Depreciation Furniture Fixtures 6667 b Depreciation Expense Debit D... View the full answer