The Trial Balance section of the worksheet for Fashion World for the period ended December 31,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Trial Balance section of the worksheet for Fashion World for the period ended December 31, 20X1, appears below. Adjustments data are also given. ADJUSTMENTS a. Supplies used, $7,580 b. Expired insurance, $5,106 c. Depreciation expense for machinery, $2,860 Required: 1. Complete the worksheet. 2. Prepare an income statement. 3. Prepare a statement of owner's equity. 4. Prepare a balance sheet. 5. Journalize the adjusting entries in the general journal. 6. Journalize the closing entries in the general journal. 7. Prepare a postclosing trial balance. Analyze: If the adjusting entry for expired insurance had been recorded in error as a credit to Insurance Expense and a debit to Prepaid Insurance for $5,106, what reported net income would have resulted? FASHION WORLD Worksheet Month Ended December 31, 20X1 Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Name Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash $ 81,890 Accounts receivable 18,000 Supplies 14,630 7,580 Prepaid insurance 23,000 5,106 Machinery 171,700 Accumulated depreciation-Machinery 2,860 Accounts payable 27,000 Angela Cruz, Capital 150,560 Angela Cruz, Drawing 12,480 Fees income 169.700 Supplies expense 7,580 Insurance expense 5,106 Salaries expense 22,200 Depreciation expense-Machinery 2,860 Utilities expense 3,360 Totals $ 347,260 $ 347,260 $ 15,546 $ 15,546 Net income FASHION WORLD Income Statement Month Ended December 31, 20X1 Revenue Expenses Total expenses Prepare a statement of owner's equity. FASHION WORLD Statement of Owner's Equity Month Ended December 31, 20X1 Req 2 Req 4 Prepare a balance sheet. FASHION WORLD Balance Sheet December 31, 20X1 Assets Total Assets Liabilities and Owner's Equity Liabilities Owner's Equity Total Liabilities and Owner's Equity Prepare a general journal. View transaction list Journal entry worksheet 3 4 5 6 7 1 Record the adjusting entry for supplies. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 20X1 Record entry Clear entry View general journal Prepare a postclosing trial balance. FASHION WORLD Postclosing Trial Balance December 31, 20X1 Account Name Debit Credit Totals If the adjusting entry for expired insurance had been recorded in error as a credit to Insurance Expense and a debit to Prepaid Insurance for $5,106, what reported net income would have resulted? Net income < Req 7 Analyze The Trial Balance section of the worksheet for Fashion World for the period ended December 31, 20X1, appears below. Adjustments data are also given. ADJUSTMENTS a. Supplies used, $7,580 b. Expired insurance, $5,106 c. Depreciation expense for machinery, $2,860 Required: 1. Complete the worksheet. 2. Prepare an income statement. 3. Prepare a statement of owner's equity. 4. Prepare a balance sheet. 5. Journalize the adjusting entries in the general journal. 6. Journalize the closing entries in the general journal. 7. Prepare a postclosing trial balance. Analyze: If the adjusting entry for expired insurance had been recorded in error as a credit to Insurance Expense and a debit to Prepaid Insurance for $5,106, what reported net income would have resulted? FASHION WORLD Worksheet Month Ended December 31, 20X1 Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Name Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash $ 81,890 Accounts receivable 18,000 Supplies 14,630 7,580 Prepaid insurance 23,000 5,106 Machinery 171,700 Accumulated depreciation-Machinery 2,860 Accounts payable 27,000 Angela Cruz, Capital 150,560 Angela Cruz, Drawing 12,480 Fees income 169.700 Supplies expense 7,580 Insurance expense 5,106 Salaries expense 22,200 Depreciation expense-Machinery 2,860 Utilities expense 3,360 Totals $ 347,260 $ 347,260 $ 15,546 $ 15,546 Net income FASHION WORLD Income Statement Month Ended December 31, 20X1 Revenue Expenses Total expenses Prepare a statement of owner's equity. FASHION WORLD Statement of Owner's Equity Month Ended December 31, 20X1 Req 2 Req 4 Prepare a balance sheet. FASHION WORLD Balance Sheet December 31, 20X1 Assets Total Assets Liabilities and Owner's Equity Liabilities Owner's Equity Total Liabilities and Owner's Equity Prepare a general journal. View transaction list Journal entry worksheet 3 4 5 6 7 1 Record the adjusting entry for supplies. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 20X1 Record entry Clear entry View general journal Prepare a postclosing trial balance. FASHION WORLD Postclosing Trial Balance December 31, 20X1 Account Name Debit Credit Totals If the adjusting entry for expired insurance had been recorded in error as a credit to Insurance Expense and a debit to Prepaid Insurance for $5,106, what reported net income would have resulted? Net income < Req 7 Analyze
Expert Answer:
Answer rating: 100% (QA)
1 WORKSHEET Trial Balance Adjusted Balances Adjusted Trial Balance Income Statement Balance Sheet Accounts Name Debit Credit Debit Credit ... View the full answer
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
Students also viewed these accounting questions
-
The Trial Balance section of the worksheet for 21st Century Fashions for the period ended December 31, 2016, appears on the next page. Adjustments data are also given. ADJUSTMENTS a. Supplies used,...
-
The Trial Balance section of the worksheet for Contemporary Fashions for the period ended December 31,2013, appears on the next page. Adjustments data are also given. ADJUSTMENTS a. Supplies used,...
-
The Adjusted Trial Balance section of the worksheet for Harmon Farm Supply follows. The owner made no additional investments during the year. Prepare a post-closing trial balance for the firm on...
-
The adjusted trial balance for Windsor Company, Ltd. is presented in E4-8. WINDSOR COMPANY, LTD. Adjusted Trial Balance July 31, 2017 Instructions (a) Prepare an income statement and a retained...
-
At January 1, 2013, Berke Ltd. acquired all the shares of Tauber Ltd. for $283,000. At this date the equity of Tauber consisted of: Share capital100,000 shares ...$200,000 Retained earnings...........
-
Suppose that T is an Sk-tree with handle v. Show that T can be obtained from disjoint trees T0, T1, . . . , Tk1, with roots r0, r1, . . . , rk1, respectively, where v is not in any of these trees,...
-
Pick any three of the sources of prospects discussed in the chapter and pick a product or service you like. Develop several ideas for how you would use each source to locate leads for the product or...
-
Assume a Gold Medal Sports outlet store began August 2012 with 44 pairs of running shoes that cost the store $33 each. The sale price of these shoes was $61. During August, the store completed these...
-
What interdisciplinary perspectives, drawn from fields such as psychology, economics, and sociology, offer novel insights into effective time allocation ?
-
Beacons Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacons Company prepared the following end-of-period spreadsheet at December 31, 20Y5, the...
-
Complete the following table by using bootstrapping to find the missing zero coupon rates, then use those rates to find the missing forward rates. (reproduce the table and paste your final answers in...
-
Explain the four types of letters in terms of definition, how to write, and type? 1- Adjustment Letters 2- Sales Letters 3- Claim Letters 4- Inquiry Letters
-
Use your choice of question as the heading for the work. Use the sub-headings below to structure the report for this week and transfer this directly into your final assessment. 2.1 Critical analysis...
-
Concord Corporation is constructing a building. Construction began in 2025 and the building was completed 12/31/25. Concord made payments to the construction company of $2472000 on 3/1/25, $1176000...
-
What educational tools did you like the most in Introduction to Hospitality course? what has been the most interesting topic and knowledge you learned and why? Explain and support your answer.
-
Tellers at Masvingo Retailers in Zimbabwe are expected to ensure that the money they collect during the day is equivalent to the value of the items that they have sold. What component of leadership...
-
2. Write an algorithm to calculate the displacement (s) of a moving object at time (t) if the object has an initial velocity (v) and acceleration (a) using the following formula: s = v.t + (/2)a.t...
-
Explain the buyers position in a typical negotiation for a business. Explain the sellers position. What tips would you offer a buyer about to begin negotiating the purchase of a business?
-
The terms debit and credit are often used in describing the effects of transactions on different accounts. What do these terms mean?
-
The Victorian Elegance China Shop sells china, stemware, and other gift items. Sales to retail customers are subject to an 8 percent sales tax. The firm sells its merchandise for cash; to customers...
-
What is a prepaid expense? Give three examples of prepaid expense items.
-
A summary of the Balgreen Bowling Club's cash book is shown below. From it, and the additional information, you are to construct an income and expenditure account for the year ending 31 December...
-
Why do you think non-profit-oriented organizations prepare receipts and payments accounts when they have all this information in the cash book already?
-
Why do you think this statement was described as being a 'statement of affairs' rather than a 'statement of financial position'?
Study smarter with the SolutionInn App