Question 2

Problem 3 & 4: Adjusted Trial Balance and Balance Sheet Presentation

Given the following unadjusted account information for Delaney Corporation, journalize the adjusting entries and prepare djusted trial balance. Then, prepare balance sheet in report form for the company as of December 31, 2021. All accounts have normal balances.

Equipment 90,000

Interest Expense 1,800

Dividends 50,400

Land 137,320

Accounts Receivable 100,060

Bonds Payable 72,000

Notes Payable (due in 6 months) 9,400

Common Stock 102,000

Prepaid Advertising 6,000

Service Revenue 393,460

Buildings 170,400

Supplies 2,420

Income Taxes Payable 3,000

Utilities Expense 1,320

Salaries and Wages Expense 50,140

Accumulated Depr. - Buildings 75,000

Cash 45,000

Other data:

1. The balance in prepaid advertising is a one-year premium paid on November 1, 2021.

2. The company performed services of $1,940 in December.

3. An inventory count on December 31 shows $1,860 of supplies on hand.

4. Annual depreciation rates are buildings (10%) and equipment (10%). Salvage value is estimated to be $20,400 for buildings and there is no salvage value for equipment.

5. Salaries of $2,900 were unpaid on December 31.

6. The interest on Bonds has been accrued for two months since November 1, 2021, at the annual rate of 5%.