Q1: Prepare adjusted entries from a trial balance:- The unadjusted and adjusted trial balances for Tinker Corporation on December 31, 2011, are shown below: Journalize the nine adjusting entries that the company made on December 31, 2011.

Transcribed Image Text:

TINKER CORPORATION TRIAL BALANCES DECEMBER 31, 2011 Unadjusted Adjusted Debit Credit Debit Credit Cash $ 35,200 $ 35,200 Accounts receivable 29,120 34,120 Unexpired insurance Prepaid rent.. Office supplies. Equipment. Accumulated depreciation: equipment Accounts payable Notes payable . Interest payable . Salaries payable Income taxes payable 1,200 600 5,400 3,600 680 380 60,000 60,000 $ 49,000 $ 50,000 900 900 5,000 5,000 200 250 2,100 1,570 2,170 Unearned revenue. 6,800 3,800 Capital stock Retained eamings 25,000 25,000 30,000 91,530 30,000 Fees earned. 99,530 Advertising expense Insurance expense Rent expense. Office supplies expense Repairs expense Depreciation expense: equipment. Salaries expense Interest expense 1,500 1,500 6,600 7,200 19,800 21,600 1,200 1,500 4,800 4,800 11,000 12,000 26,300 28,400 200 250 Income taxes expense. 7,000 7,600 $210,000 $210,000 $218,750 $218,750 TINKER CORPORATION TRIAL BALANCES DECEMBER 31, 2011 Unadjusted Adjusted Debit Credit Debit Credit Cash $ 35,200 $ 35,200 Accounts receivable 29,120 34,120 Unexpired insurance Prepaid rent.. Office supplies. Equipment. Accumulated depreciation: equipment Accounts payable Notes payable . Interest payable . Salaries payable Income taxes payable 1,200 600 5,400 3,600 680 380 60,000 60,000 $ 49,000 $ 50,000 900 900 5,000 5,000 200 250 2,100 1,570 2,170 Unearned revenue. 6,800 3,800 Capital stock Retained eamings 25,000 25,000 30,000 91,530 30,000 Fees earned. 99,530 Advertising expense Insurance expense Rent expense. Office supplies expense Repairs expense Depreciation expense: equipment. Salaries expense Interest expense 1,500 1,500 6,600 7,200 19,800 21,600 1,200 1,500 4,800 4,800 11,000 12,000 26,300 28,400 200 250 Income taxes expense. 7,000 7,600 $210,000 $210,000 $218,750 $218,750