CHAPTER 3 Adjusting Accounts for Financial Statement Analysis Component: Identify and explain which GAAP requires that adjusting entries be recorded. E how much would revenues, expenses, and profit be overstated/understated if adjustments were not r corded at December 31, 2017, for Javelin Company? Exercise 3-17 Adjusting entries L04,6 eXcel CHECK FIGURE: Adjusted trial balance, debits $511,500 Nuna Music Trial Balances.xls Homer Insert Page Layout Formulas Review Deta Vew P18 1 Nuna Music 2 Trial Balances 3 February 28, 2017 Unadjusted Adjusted 5 Trial Balance Adjustments Trial Balance 6 Dr. Dr. Cr. Cr. Cr. Dr. 7 Cash 14,000 8 Accounts recaivable 32,000 7/2-000 q Prepaid insurence 10 Equipment 11 Accumulated depreciation, equipment 12 Accounts payable 13 Abraham Nuna, capital 16,800 102,000 $ 23,000 19,000 213,000 14 Abraham Nuna, withdrawals 102,000 3/000 15 Revenues 214,000 16 Depreciation expense, equipment 17 Salaries expense -0- 187,700 18 Insurance expense 14,500 511,500 $ 469,000 $469,000 19 Totals Additional information: a. Annual depreciation of the equipment; $11,500. b. $12,000 of the Prepaid Insurance balance has expired. $31,000, c. Unbilled and unrecorded revenues at year-end to Required Referring to Exhibit 3.22, use the information provided to complete the columns. dger. Exhibit 3.22 shows the unadjusted and adjusted trial balances for Or ajter adjusting entries are ganico at March 31, 2017, using an electronic spreadsheet. Electronic spreadsheet software such as Excel allows us to compile and adjust the relevant numbers efficiently. EXHIBIT 3.22 Unadjusted and Adjusted Trial Balance for Organico RGANICO Organico Trial Balances.xls se Insert Page Layout Fomdas Dna vi View P18 A C 1 Organico Trial Balances. March 31, 2017 2 3 4 Unadjusted Trial Balance Adjusted Trial Balance 5 Adjustments 6 Dr. Cr. Dr. Cr. Dr. Cr 7 Cash $ 8,070 $ 8,070 8 Accounts receivable (g) $1,800 1,800 Supplies 10 Prepaid insurance 11 Equipment 12 Accumulated depreciation, equipment 13 Accounts payable 3,600 (b) $1,050 2,550 2,400 100 () 2,300 6,000 6,000 200 $ 200 (c) $ 200 200 14 Interest payable (e 35 35 15 Salaries payable 16 Uneamed food seasa o 350 350 3.000 (d) 2,750 250 17 Notes paysble 6,000 6,000 18 Hailey Walker, Capite 19 Hailey Walker, witharawals 20 Food services revenue 10.000 10.000 600 600 250 5,850 3,800 (d) (g) 1,800 300 300 21 Teaching revenue 22 Depreciation expense, equipment 23 Salaries expense 200 200 (c) 1,610 (f 350 1.260 35 35 (e) 24 Interest expense 100 100 () 25 Insurance expense 26 Rent expense 1,000 1,000 1,050 (b) 1,050 27 Supplies expense 28 Utilities expense 230 230 $25,545 $3,505 $25,545 $3,505 $23,300 $23,300 29 Totals In Exhibit 3.22, notice several new accounts arising from the adjusting entries. The listing of ac- counts is also slightly changed to match the order listed in the Chart of Accounts in Appendix IV at the end of the book. 17 surance expese tele