At Dec 31, the trial balance shown below was prepared from the ledger of Sanlucas, Inc. Sanlucas Inc .provides home inspection services to clients. The accounts are adjusted and closed each month.

Sanlucas Inc.

Unadjusted Trial Balance

Dec 31, 2018

Cash…………………………............................................. 30,000

Account receivable…………………………………………70,500

Note Receivable…………………………………………… 67,900

Prepaid rent…………………………………………………29,000

Unexpired insurance………………………………………........375

Inspection supplies …………………………………………....9000

Automobiles………………………………………………….90,000

Accumulated depreciation Automobiles…………………………………….12,500

Notes payable ……………………………………………………………....14,750

Unearned Inspection Revenue……………………………………………….20,000

Capital Stock………...................................................................................... 229,475

Retained Earnings……………………………………………………………...7,000

Inspection Revenue………………………………………………………….160,950

Testing expense……………………………………………….43,800

Inspection Supply expense……………………………………..9,000

Depreciation expense: Automobiles………………………….11,000

Salaries expense………………………………………………66,700

Income Tax expense……………………………………….....17,400

   ------------------------------------------------------------       444,675    444,675

Additional data:

(i).Automobiles being depreciated over a period of 5 years.

(ii).At December 31,2018, $3,000 of previously unearned Inspection revenue had been earned.

(iii).Salaries earned by employees but not yet paid amount to Rs.3,300/- at December 31,2018.

(iv).Accrued but unrecorded and uncollected Inspection fees total $690 at December 31,2018.

(v). Inspection supplies on hand at December 31, 2018 total 7,500.

Requirements

(a). Prepare adjusting entries.

(b). Prepare adjusted trial balance. 

(c). income statement and Balance sheet.

Answer rating: 100% (QA)

Adjustment Entries SNo Account Particulars Debit Credit a Depreciation Expense Automobiles Ac Dr 700000 To Accumulated Depreciation Automobiles Ac 700... View the full answer