The end-of-month trial balance of St. Paul Technology at January 31, 2012, follows: Additional data at January 31, 2012: a. Supplies consumed during the month, $1,400. Half is selling expense, and the other half is general  expense. b. Depreciation for the month: building, $3,800; furniture, $4,600. One-fourth of depreciation is  selling expense, and three-fourths is general expense. c. Unearned sales revenue earned during January, $4,420. d. Accrued salaries, a general expense, $1,100. e. Inventory on hand, $63,460. St. Paul uses the perpetual inventory system. 

Requirements 

1. Using four-column accounts, open the accounts listed on the trial balance, inserting their unadjusted balances. Date the balances of the following accounts January 1: Supplies;  Building; Accumulated depreciation—building; Furniture; Accumulated depreciation— furniture; Unearned sales revenue; and Tarsus, the capital. Date the balance of Tarsus, drawing, January 31. Also, open the  Income summary account. 

2. Enter the trial balance on a worksheet, and complete the worksheet for the month ended  January 31, 2012. St. Paul Technology groups all operating expenses under two accounts,  Selling expenses and General expenses. Leave two blank lines under Selling expense and three blank lines under  General expense.

 3. Prepare the company’s multi-step income statement and statement of owner’s equity for  the month ended January 31, 2012. Also prepare the balance sheet at that date in report  form. 

4. Journalize the adjusting and closing entries at January 31. 

5. Post the adjusting and closing entries

Answer rating: 100% (QA)

Solution 1 Open accounts for St Paul Technology Cash account Cash Balance Date Item PR Debit S Ce... View the full answer