The following six-column table for Solutions Co. includes the unadjusted trial balance as of December 31, 2011.

Required

1. Complete the six-column table by entering adjustments that reflect the following information:

a. As of December 31, 2011, employees had earned $420 of unpaid and unrecorded wages. The next payday is January 4, at which time $1,250 in wages will be paid.

b. The cost of supplies still available at December 31, 2011, is $2,450.

c. The notes payable requires an interest payment to be made every three months. The amount of unrecorded accrued interest at December 31, 2011, is $500. The next interest payment, in the amount of $600, is due on January 15, 2012.

d. Analysis of the unearned rental fees shows that $3,100 remains unearned at December 31, 2011.

e. In addition to the machinery rental fees included in the revenue account balance, the company has earned another $2,350 in unrecorded fees that will be collected on January 31, 2012. The company is also expected to collect $4,400 on that same day for new fees earned in January 2012.

f. Depreciation expense for the year is $3,800.

2. Prepare journal entries for the adjustments entered in the six-column table for part 1.

3. Prepare journal entries to reverse the effects of the adjusting entries that involve accruals.

4. Prepare journal entries to record the cash payments and cash collections described for January.

Transcribed Image Text:

SOLUTIONS COMPANY December 31, 2011 Adjusted Unadjusted Trial Balance Adjustments Trial Balance Account Tibe 6 Cash 7 Accounts recelvabie Suppiles O Machinery 10 Accumulated depreciation-Macninery 11 Interest payable 12 Salares 1a Unearned rental fees 14 Notes payable 15 G. Ciay, Capita 10 G. Clay, Withdr awas 17 Rental tees earned 18 Depreciation expense-Macninery 10 Saaries expense 20 Interest expense 21 Supples expense 22 Totals 23 Dr. Dr. Cr. $9.000 6,600 40,100 $15,000 payabie 5.200 20,000 13,200 10,500 37,000 23,500 1,500 $91.200 $91,200 SOLUTIONS COMPANY December 31, 2011 Adjusted Unadjusted Trial Balance Adjustments Trial Balance Account Tibe 6 Cash 7 Accounts recelvabie Suppiles O Machinery 10 Accumulated depreciation-Macninery 11 Interest payable 12 Salares 1a Unearned rental fees 14 Notes payable 15 G. Ciay, Capita 10 G. Clay, Withdr awas 17 Rental tees earned 18 Depreciation expense-Macninery 10 Saaries expense 20 Interest expense 21 Supples expense 22 Totals 23 Dr. Dr. Cr. $9.000 6,600 40,100 $15,000 payabie 5.200 20,000 13,200 10,500 37,000 23,500 1,500 $91.200 $91,200

Answer rating: 100% (QA)

Part 1 SOLUTIONS CO December 31 2011 UnadjustedTrial Balance Adjustments AdjustedTrial Balance Cash ... View the full answer