The following is the unadjusted trial balance of Pepe and Pilar Pens business at the end...

 

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The following is the unadjusted trial balance of Pepe and Pilar Pens business at the end of its first year of operations, December 31, 2019. Account Acct. No. 101 Cash 110 Accounts Receivable 161 Prepaid Insurance 173 Unused Supplies Truck 184 194 Accumulated Depreciation-Truck 210 226 248 260 320 410 440 610 Advertising Expense 615 Commission Expense Accounts Payable Salaries Payable Unearned rent revenue Income Tax Payable Owner's Equity Commissions earned Rent Earned Debit Balance 3,300 4,000 1,200 500 8,000 200 1,000 Credit 5,000 0 2,400 0 6,000 16,100 0 624 Depreciation expense - truck 631 632 654 656 668 669 830 Insurance expense Interest Expense Rent Expense Salaries Expense Supplies Expense Internet Expense Income taxes expense 0 0 400 3,600 7,000 0 300 0 29,500 29,500 The following additional information is available: a. Prepaid insurance at December 31 amounts to $600. b. A physical count indicates that $300 of supplies is still on hand at December 31. c. The truck was purchased on July 1; it has an estimated useful life of 4 years. d. One day of salaries for December 31 is unpaid; the unpaid amount of $200 will be included in the first Friday payment in January. e. The balance in the Unearned Rent Revenue account represents six months rental of warehouse space, effective October 1. f. A $100 bill for December internet charges has not yet been recorded. g. Income taxes expense for the year is $300. This amount will be paid in the next fiscal year. Required: 1. Prepare all necessary adjusting entries at December 31, 2019, including general ledger account numbers. Descriptions are not needed. 2. Prepare an adjusted trial balance at December 31, 2019. 3. Prepare an income statement, statement of changes in equity, and balance sheet. The following is the unadjusted trial balance of Pepe and Pilar Pens business at the end of its first year of operations, December 31, 2019. Account Acct. No. 101 Cash 110 Accounts Receivable 161 Prepaid Insurance 173 Unused Supplies Truck 184 194 Accumulated Depreciation-Truck 210 226 248 260 320 410 440 610 Advertising Expense 615 Commission Expense Accounts Payable Salaries Payable Unearned rent revenue Income Tax Payable Owner's Equity Commissions earned Rent Earned Debit Balance 3,300 4,000 1,200 500 8,000 200 1,000 Credit 5,000 0 2,400 0 6,000 16,100 0 624 Depreciation expense - truck 631 632 654 656 668 669 830 Insurance expense Interest Expense Rent Expense Salaries Expense Supplies Expense Internet Expense Income taxes expense 0 0 400 3,600 7,000 0 300 0 29,500 29,500 The following additional information is available: a. Prepaid insurance at December 31 amounts to $600. b. A physical count indicates that $300 of supplies is still on hand at December 31. c. The truck was purchased on July 1; it has an estimated useful life of 4 years. d. One day of salaries for December 31 is unpaid; the unpaid amount of $200 will be included in the first Friday payment in January. e. The balance in the Unearned Rent Revenue account represents six months rental of warehouse space, effective October 1. f. A $100 bill for December internet charges has not yet been recorded. g. Income taxes expense for the year is $300. This amount will be paid in the next fiscal year. Required: 1. Prepare all necessary adjusting entries at December 31, 2019, including general ledger account numbers. Descriptions are not needed. 2. Prepare an adjusted trial balance at December 31, 2019. 3. Prepare an income statement, statement of changes in equity, and balance sheet.

Answer rating: 100% (QA)

1 Prepaid Insurance 602 600 Supplies Expense 668 300 Accumulated Depreciation Truck 400 Unearned Ren... View the full answer