Presented below is the November 30, 2022, unadjusted trial balance of Brooke's Candle Boutique, which is...
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Presented below is the November 30, 2022, unadjusted trial balance of Brooke's Candle Boutique, which is owned by Superior Scents Company. The temporary account balances represent the results of entries recorded during the first 11 months of 2022, and the balance in Brooke's common stock and retained earnings accounts have not changed since December 31, 2021. Cash Supplies Prepaid Store Rental Equipment Accumulated Depreciation, Equipment Building Accumulated Depreciation, Building Accounts Payable Wages Payable Utilities Payable Interest Payable Unearned Candle Service Revenue Long-Term Notes Payable Common Stock Retained Earnings Dividends Income Summary Candle Service Revenue Wages Expense Store Rental Expense Supplies Expense Utilities Expense Brooke's Candle Boutique Unadjusted Trial Balance November 30, 2022 Advertising Expense Maintenance Expense Depreciation Expense, Equipment Depreciation Expense, Building Interest Expense Totals REF 111 112 113 131 132 135 136 211 212 213 214 215 231 311 312 313 314 411 511 512 513 514 515 516 517 518 519 DEBIT 666,400 7,300 24,100 412,000 620,000 0 215,500 298,000 42,500 23,000 4,700 62,300 0 0 0 $2,375,800 CREDIT 166,000 288,000 47,200 0 0 0 9,100 197,200 99,300 293,000 0 1,276,000 $2,375.800 The following transactions occurred during the month of December 2022: Paid accounts payable of $17,500 Paid store rental of $6,200 in advance. Purchased supplies, $900, on account. Deposited $21,000 of candle service revenue receipts. Unearned candle service revenue is for gift certificates sold for future candle services. $650 more of these gift certificates were sold to a local shop, for cash. Acquired additional equipment worth $29,000 by paying $600 cash and giving a long-term note payable for the balance. Dec. 4 5 6 6 9 11 MAKKZ2Z855 13 15 16 18 21 23 27 27 29 31 31 Paid wages of $12,000 for the period December 1 through 14. Paid for the supplies purchased on December 6. Purchased $13,000 of supplies on credit. Sold 600 shares of common stock for $7,200. Deposited $34,700 from candle service revenue receipts. Paid $6,000 for repairs at the candle boutique. Paid for the supplies purchased on December 16. Paid wages of $13,500 for the period December 15 through 28. Paid $4,700 to newspaper for advertisements that appeared in December. Deposited $38,500 from candle service revenue receipts. Paid the annual dividend, amounting to $8,500. REQUIREMENTS Please follow these instructions carefully! 1. Prepare journal entries to record the December transactions listed above. 2. Post the December journal entries to the T-accounts to get your unadjusted balances. Put those balances in the unadjusted trial balance columns of the worksheet. 3. Prepare adjusting journal entries based on the following: a. Unpaid wages were $6,000 as of December 31. b. The supplies balance was $13,000 on December 31. c. The unexpired portion of the prepaid store rental was $7,600 as of December 31. d. Depreciation for the year on the equipment was $23,000. e. Depreciation for the year on the building was $28,450. f. Unpaid utilities expense for December was $3,100. g. Interest expense on the note payable for 2022 was $4,200, to be paid in 2023. h. Candle service gift certificates still unredeemed at December 31 totaled $1,900 4. Post the adjusting journal entries to the T-accounts and to the Adjustments columns of the worksheet. 5. Prepare the adjusted trial balance section of the worksheet. 6. Prepare an income statement, statement of retained earnings, and a classified balance sheet for the year ended December 31, 2022. 7. Journalize and post the closing entries to the T-accounts. Presented below is the November 30, 2022, unadjusted trial balance of Brooke's Candle Boutique, which is owned by Superior Scents Company. The temporary account balances represent the results of entries recorded during the first 11 months of 2022, and the balance in Brooke's common stock and retained earnings accounts have not changed since December 31, 2021. Cash Supplies Prepaid Store Rental Equipment Accumulated Depreciation, Equipment Building Accumulated Depreciation, Building Accounts Payable Wages Payable Utilities Payable Interest Payable Unearned Candle Service Revenue Long-Term Notes Payable Common Stock Retained Earnings Dividends Income Summary Candle Service Revenue Wages Expense Store Rental Expense Supplies Expense Utilities Expense Brooke's Candle Boutique Unadjusted Trial Balance November 30, 2022 Advertising Expense Maintenance Expense Depreciation Expense, Equipment Depreciation Expense, Building Interest Expense Totals REF 111 112 113 131 132 135 136 211 212 213 214 215 231 311 312 313 314 411 511 512 513 514 515 516 517 518 519 DEBIT 666,400 7,300 24,100 412,000 620,000 0 215,500 298,000 42,500 23,000 4,700 62,300 0 0 0 $2,375,800 CREDIT 166,000 288,000 47,200 0 0 0 9,100 197,200 99,300 293,000 0 1,276,000 $2,375.800 The following transactions occurred during the month of December 2022: Paid accounts payable of $17,500 Paid store rental of $6,200 in advance. Purchased supplies, $900, on account. Deposited $21,000 of candle service revenue receipts. Unearned candle service revenue is for gift certificates sold for future candle services. $650 more of these gift certificates were sold to a local shop, for cash. Acquired additional equipment worth $29,000 by paying $600 cash and giving a long-term note payable for the balance. Dec. 4 5 6 6 9 11 MAKKZ2Z855 13 15 16 18 21 23 27 27 29 31 31 Paid wages of $12,000 for the period December 1 through 14. Paid for the supplies purchased on December 6. Purchased $13,000 of supplies on credit. Sold 600 shares of common stock for $7,200. Deposited $34,700 from candle service revenue receipts. Paid $6,000 for repairs at the candle boutique. Paid for the supplies purchased on December 16. Paid wages of $13,500 for the period December 15 through 28. Paid $4,700 to newspaper for advertisements that appeared in December. Deposited $38,500 from candle service revenue receipts. Paid the annual dividend, amounting to $8,500. REQUIREMENTS Please follow these instructions carefully! 1. Prepare journal entries to record the December transactions listed above. 2. Post the December journal entries to the T-accounts to get your unadjusted balances. Put those balances in the unadjusted trial balance columns of the worksheet. 3. Prepare adjusting journal entries based on the following: a. Unpaid wages were $6,000 as of December 31. b. The supplies balance was $13,000 on December 31. c. The unexpired portion of the prepaid store rental was $7,600 as of December 31. d. Depreciation for the year on the equipment was $23,000. e. Depreciation for the year on the building was $28,450. f. Unpaid utilities expense for December was $3,100. g. Interest expense on the note payable for 2022 was $4,200, to be paid in 2023. h. Candle service gift certificates still unredeemed at December 31 totaled $1,900 4. Post the adjusting journal entries to the T-accounts and to the Adjustments columns of the worksheet. 5. Prepare the adjusted trial balance section of the worksheet. 6. Prepare an income statement, statement of retained earnings, and a classified balance sheet for the year ended December 31, 2022. 7. Journalize and post the closing entries to the T-accounts.
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Financial and Managerial Accounting Using Excel for Success
ISBN: 978-1111993979
1st edition
Authors: James Reeve, Carl S. Warren, Jonathan Duchac
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