Below is the trial balance of Summit Ltd. at December 31, 2021 Summit Ltd. Trial Balance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Below is the trial balance of Summit Ltd. at December 31, 2021 Summit Ltd. Trial Balance December 31, 2021 Account Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation- Equipment Notes Payable Unearned revenue Share Capital- Ordinary Dividends Retained Earnings Service Revenue Salaries expense Rent expense Advertising expense Total Debit $ 100,000 40,000 4,800 8,000 96,000 4,000 20,000 12,000 8,000 $ 292,800 Credit $ 8,000 8,800 6,000 140,000 50,000 80,000 $ 292.800 Other data: 1. Supplies on hand at December 31 are $1,500. 2. A utility bill for $500 has not been recorded and will not be paid until next month. (The appropriate liability account here is accounts payable) 3. The insurance policy was purchased on November 1, 2021 and is for a year. 4. $2,500 of unearned service revenue is recognized for services performed at the end of December. 5. The interest accrued but not yet recorded or paid on the note payable is $200 for 2021. 6. The equipment was purchased before 2021. It has a 4-year period with no residual value. It is being depreciated at $24,000 per year. 7. Invoices representing $3,000 of services performed have not been recorded as of December 31. Instructions: 1) Prepare the adjusting entries for the year ended December 31, 2021. 2) Post the adjusting entries 3) Prepare an adjusted trial balance 4) After preparing the adjusted trial balance, prepare the necessary closing entries on December 31, 2021. 5) Post the closing entries 6) Prepare the Post-Closing Trial Balance Below is the trial balance of Summit Ltd. at December 31, 2021 Summit Ltd. Trial Balance December 31, 2021 Account Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation- Equipment Notes Payable Unearned revenue Share Capital- Ordinary Dividends Retained Earnings Service Revenue Salaries expense Rent expense Advertising expense Total Debit $ 100,000 40,000 4,800 8,000 96,000 4,000 20,000 12,000 8,000 $ 292,800 Credit $ 8,000 8,800 6,000 140,000 50,000 80,000 $ 292.800 Other data: 1. Supplies on hand at December 31 are $1,500. 2. A utility bill for $500 has not been recorded and will not be paid until next month. (The appropriate liability account here is accounts payable) 3. The insurance policy was purchased on November 1, 2021 and is for a year. 4. $2,500 of unearned service revenue is recognized for services performed at the end of December. 5. The interest accrued but not yet recorded or paid on the note payable is $200 for 2021. 6. The equipment was purchased before 2021. It has a 4-year period with no residual value. It is being depreciated at $24,000 per year. 7. Invoices representing $3,000 of services performed have not been recorded as of December 31. Instructions: 1) Prepare the adjusting entries for the year ended December 31, 2021. 2) Post the adjusting entries 3) Prepare an adjusted trial balance 4) After preparing the adjusted trial balance, prepare the necessary closing entries on December 31, 2021. 5) Post the closing entries 6) Prepare the Post-Closing Trial Balance
Expert Answer:
Answer rating: 100% (QA)
1 Adjusting Entries Date General Journal Debit Credit 2021 Dec 31 Supplies expense 6500 Supplies 6500 To record supplies used in the month Dec 31 Utilities expense 500 Accounts payable 500 To record u... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
Posted Date:
Students also viewed these accounting questions
-
Below is the Trial Balance of Emotion Enterprise extracted from the books of the head office and the branch as at 30 June 2019: Head Office Branch RM RM RM RM Account Receivables 56,170 13,340...
-
The following is the trial balance of J. Peters as at 30 September 20X3: Additional information 1. The inventory at 30 September 20X3 was valued at £4,580. 2. The loan from A. Drew is repayable...
-
The trial balance of Building Blocks Child Care, Inc., does not balance. The following errors are detected: a. Cash is understated by $4,000. b. A $2,000 debit to Accounts receivable was posted as a...
-
Evan participates in an HSA carrying family coverage for himself, his spouse, and two children. In 2018, Evan has $100 per month deducted from his paycheck and contributed to the HSA. In addition,...
-
Research on performance management suggests that organizations can compete most effectively by identifying and monitoring those elements that are most closely linked to organizational success. A key...
-
Build a strong culture in a company. Proper distribution of work according to their efficiency. Giving rewards to employees such as by increasing their salary.
-
Identify project needs to evaluate the expected cost and value.
-
Morro Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor is $225 per board. This includes 30 pounds of direct materials, at the...
-
Navkar Corporation Limited showed the inventory stock on S ptember 3 0 , 2 0 1 7 , is R$ 7 5 , 0 0 0 . From September 1 5 to September 3 0 , the gross sales of the company were R$ 1 2 5 , 0 0 0 ;...
-
1. Here are the densities and redii of planets in our solar system (in grams per cm 3 and km, respectively) How much would you weigh on these different planets? 1 pound is equal to 0.453592 kg. 2....
-
D. Deni commenced business on 1 April 2014 by depositing Sh.8 million into the business bank account. All receipts and payments were channelled through this business account. During the year ended 31...
-
Assume that a 30 year, $5 %$, semiannual, $\$ 10,000$ bond was issued ten years ago. Today current market rates are $4.5 %$. How much could that bond be sold for today?
-
What is net working capital, or simply working capital?
-
What are the steps from issuance of a bill until we collect payment from a customer and have access to the funds? What role do managers play, aside from issuing the bill?
-
What is the period of time from which you write a check until it clears your bank account called?
-
When cash is invested to earn a higher return than a bank savings account, what are the two primary tradeoffs?
-
Flow velocity through a pipe that supplies water to a nozzle is measured with a pitot tube as shown in the figure. Mercury manometer shows h mm of height difference. Nozzle is connected to the pipe...
-
The landing gear of an aircraft with: mass of 2000 kg the spring-mass-damper system Consider that the runway surface is y(t) = 0.2 cos 157.08t stiffness of the spring is 5 x 105 N/m. What is the...
-
InnoTech Applications paid $1,300,000 in research costs for a new software program. InnoTech also paid $1,000,000 to acquire a patent on other software. After readying the software for production,...
-
Indicate whether each statement below applies to a sole proprietorship, a partnership, or a corporation. a. The life of the business is limited by the death of the owner. b. Each owner is personally...
-
Identify 10 items of information on an invoice.
-
What is the total amount of slack in all critical path activities?
-
PERT assumes that individual task times can be modeled with what type of prob- ability distribution?
-
Would a project with 100 tasks always be more challenging to manage than a differ- ent project with only 20 tasks? Why or why not?
Study smarter with the SolutionInn App