Post the Unadjusted Trial Balance totals to the T-Accounts on the sheet labeled T-Accounts. These numbers...

 
 

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Post the Unadjusted Trial Balance totals to the T-Accounts on the sheet labeled "T-Accounts." These numbers will represent your beginning balances. Part 2 Record the adjusting journal entries required for items AND post them to the T-accounts. Add or extend lines on any T-Accounts if necessary. Prepare an Adjusted Trial Balance for Gatsby, Inc. using the updated T- Accounts. Part 3 Adjusted TB check figure: $1,277,600 Part 4 Prepare, in good form, financial statements on each specified sheet in the folowing order: Multi-Step Income Statement and prepare a bar or pie chart for a visual representation of a еxpenses. b. Statement of Stockholders' Equity Classified Balance Sheet Total Assets check figure: $871,950 Part 5 Using the financiai statements, calculate the 5 following ratios on the specified sheet and briefly (2 or 3 sentences) interpret the ratios for Gatsby, Inc. a Working Capital b Current Ratio Quick Ratio (Acid Test) Debt to Equity Times Interest Earned e Record closing journal entries AND post them to the T- accounts. Part 6 Part 7 Prepare a Post-Closing Trial Balance using the updated T-accounts. Total debit check figure: $935,950 Gatsby, Inc. Unadjusted Trial Balance 12/31/XX Debit 121,550 236,000 24,000 4,500 Credit Cash Accounts Receivable Prepaid Insurance Supplies Inventory Land 85,000 75,000 200,000 Building Accumlated Depreciation- Building Equipment Accumlated Depreciation- Equipment Accounts Payable Interest Payable Wages Payable Unearned Revenue - Alarm Systems Long-Term Bank Note Payable Common Stock 40,000 160,000 8,000 160,500 45,000 150,000 310,000 124,750 Retained Earnings Dividends 7,000 Revenue 381,000 Cost of the Goods Sold 132,500 Depreciation Expense Insurance Expense Interest Expense Rent Expense Supplies Expense Utilities Expense Wage Expense Totals 15,000 24,000 9,700 125,000 $1,219,250 $1,219,250 Information to prepare adjusting journal entries The following information relates to Gatsby, Inc. as of December 31 of the current year. The company uses the calendar year as its annual reporting period and the Accrual Method of Accounting. Prepaid and uneamed items are PREPARE (in proper form) ADJUSTING JOURNAL ENTRIES HERE recorded as assets and labilities, respectively. Prepare al necessary adjusting jounal entries and post to the T- accounts. Account Debit Credit The company's weektly payroll is $3,000 and is paid each Friday for a five-day work wook. Assume Wages Expense A. A. 1,200 December 31st falls on a Monday, but the employees will not be paid their wages until Friday. January 3rd. Wages Payable Account 1,200 Eighteen months earter, on July 1st the company purchased equipment that cost $160,000. Its usetul ife is predicted to be twenty years, at which time the equipment is expected to have a zero salvage/residual value. Gatsby, Inc, unes the straight-line depreciation method. Deprecation has NOT been recorded for this year. B. B. Depreciation on equipment Account 16,000 Accumlated Depercation on equipment Account 16,000 On Septermber 1st of the curent year Gatsby, Inc. was paid $45,00 in advance of future installation of alarm systems in 5 new homes. The amount wan oredited to the Unearned Revenue - Alarms account. Between September 1st and December 31st alarm systema were installed in 1 home, completing that job. Unearned Rovanue Aocount 30,000 Revenue Account 30.000 On October tst of the current year the company purchased a 12-month insurance policy for $24,000. The transaction D. D. Insurance Expanse Aooount 3,000 was recorded with a debit to the Prepaid Insurance account. Insurance expense has not been recorded for Prepaid insurance Account 3,000 November nor December On December 30 of the curent year the company completed an $38,000 job that has not been biled/invoiced 38,000 E. Accounts Recelvable Account is predicted to be twenty years, at which time the equipment is expected to have a zero salvage/residual value. Gatsby, Inc. uses the straight-line depreciation method. Deprecation has NOT been recorded for this year. Accumlated Depercation on equipment Account 16.000 On September 1st of the curent year Gatsby, Inc. was paid $45,000 in advance of future installation of alarm systems in 3 new homes. The amount was credited to the Uneamed Revenue - Alarms account. Between September 1st and December 31st alarm systems were installed in 1 home, completing that job. C. C. Unearned Revenue Account 30,000 Revenue Account 30,000 On October 1st of the current year the company purchased a 12-monith insurance policy for D. D. Insurance Expense Account 3,000 $24,000. The transaction was recorded with a debit to the Prepaid Insurance account. Insurance expense has not been recorded for Prepaid Insurance Account 3,000 November nor December. On December 30 of the curent year the company completed an $38,000 job that has not been E. E. Accounts Receivable Account 30,000 billed/involced and therefore has not been recorded. Revenue Account 38,000 A $150,000 long-tem note payable was signed on August tet of the current year. It ia a five-year note with F. F. Intrest Expense Account 4,500 a 6% interest rate. Interest expense as not been acorued for this year. Intrest Payable Account 4,500 Supplies at the begiving of the curent year had a balance of $ 300. Supolies valued at $4,200 were purchased thoughout the year The curent balance in the account is S400. a. G. Supplies expense account 4,300 Supplies Account 4,300 Depreciation on the bulding is calcuisted uning the straight-line depreciation method. Gatsby estimates depreciation H. H. Deprecation on Buldings Account 10,000 on the building over a 25 year period and a zero salvaga/residual Accumu ated Depreciation on Buildings Account 10,000 value. Post the Unadjusted Trial Balance totals to the T-Accounts on the sheet labeled "T-Accounts." These numbers will represent your beginning balances. Part 2 Record the adjusting journal entries required for items AND post them to the T-accounts. Add or extend lines on any T-Accounts if necessary. Prepare an Adjusted Trial Balance for Gatsby, Inc. using the updated T- Accounts. Part 3 Adjusted TB check figure: $1,277,600 Part 4 Prepare, in good form, financial statements on each specified sheet in the folowing order: Multi-Step Income Statement and prepare a bar or pie chart for a visual representation of a еxpenses. b. Statement of Stockholders' Equity Classified Balance Sheet Total Assets check figure: $871,950 Part 5 Using the financiai statements, calculate the 5 following ratios on the specified sheet and briefly (2 or 3 sentences) interpret the ratios for Gatsby, Inc. a Working Capital b Current Ratio Quick Ratio (Acid Test) Debt to Equity Times Interest Earned e Record closing journal entries AND post them to the T- accounts. Part 6 Part 7 Prepare a Post-Closing Trial Balance using the updated T-accounts. Total debit check figure: $935,950 Gatsby, Inc. Unadjusted Trial Balance 12/31/XX Debit 121,550 236,000 24,000 4,500 Credit Cash Accounts Receivable Prepaid Insurance Supplies Inventory Land 85,000 75,000 200,000 Building Accumlated Depreciation- Building Equipment Accumlated Depreciation- Equipment Accounts Payable Interest Payable Wages Payable Unearned Revenue - Alarm Systems Long-Term Bank Note Payable Common Stock 40,000 160,000 8,000 160,500 45,000 150,000 310,000 124,750 Retained Earnings Dividends 7,000 Revenue 381,000 Cost of the Goods Sold 132,500 Depreciation Expense Insurance Expense Interest Expense Rent Expense Supplies Expense Utilities Expense Wage Expense Totals 15,000 24,000 9,700 125,000 $1,219,250 $1,219,250 Information to prepare adjusting journal entries The following information relates to Gatsby, Inc. as of December 31 of the current year. The company uses the calendar year as its annual reporting period and the Accrual Method of Accounting. Prepaid and uneamed items are PREPARE (in proper form) ADJUSTING JOURNAL ENTRIES HERE recorded as assets and labilities, respectively. Prepare al necessary adjusting jounal entries and post to the T- accounts. Account Debit Credit The company's weektly payroll is $3,000 and is paid each Friday for a five-day work wook. Assume Wages Expense A. A. 1,200 December 31st falls on a Monday, but the employees will not be paid their wages until Friday. January 3rd. Wages Payable Account 1,200 Eighteen months earter, on July 1st the company purchased equipment that cost $160,000. Its usetul ife is predicted to be twenty years, at which time the equipment is expected to have a zero salvage/residual value. Gatsby, Inc, unes the straight-line depreciation method. Deprecation has NOT been recorded for this year. B. B. Depreciation on equipment Account 16,000 Accumlated Depercation on equipment Account 16,000 On Septermber 1st of the curent year Gatsby, Inc. was paid $45,00 in advance of future installation of alarm systems in 5 new homes. The amount wan oredited to the Unearned Revenue - Alarms account. Between September 1st and December 31st alarm systema were installed in 1 home, completing that job. Unearned Rovanue Aocount 30,000 Revenue Account 30.000 On October tst of the current year the company purchased a 12-month insurance policy for $24,000. The transaction D. D. Insurance Expanse Aooount 3,000 was recorded with a debit to the Prepaid Insurance account. Insurance expense has not been recorded for Prepaid insurance Account 3,000 November nor December On December 30 of the curent year the company completed an $38,000 job that has not been biled/invoiced 38,000 E. Accounts Recelvable Account is predicted to be twenty years, at which time the equipment is expected to have a zero salvage/residual value. Gatsby, Inc. uses the straight-line depreciation method. Deprecation has NOT been recorded for this year. Accumlated Depercation on equipment Account 16.000 On September 1st of the curent year Gatsby, Inc. was paid $45,000 in advance of future installation of alarm systems in 3 new homes. The amount was credited to the Uneamed Revenue - Alarms account. Between September 1st and December 31st alarm systems were installed in 1 home, completing that job. C. C. Unearned Revenue Account 30,000 Revenue Account 30,000 On October 1st of the current year the company purchased a 12-monith insurance policy for D. D. Insurance Expense Account 3,000 $24,000. The transaction was recorded with a debit to the Prepaid Insurance account. Insurance expense has not been recorded for Prepaid Insurance Account 3,000 November nor December. On December 30 of the curent year the company completed an $38,000 job that has not been E. E. Accounts Receivable Account 30,000 billed/involced and therefore has not been recorded. Revenue Account 38,000 A $150,000 long-tem note payable was signed on August tet of the current year. It ia a five-year note with F. F. Intrest Expense Account 4,500 a 6% interest rate. Interest expense as not been acorued for this year. Intrest Payable Account 4,500 Supplies at the begiving of the curent year had a balance of $ 300. Supolies valued at $4,200 were purchased thoughout the year The curent balance in the account is S400. a. G. Supplies expense account 4,300 Supplies Account 4,300 Depreciation on the bulding is calcuisted uning the straight-line depreciation method. Gatsby estimates depreciation H. H. Deprecation on Buldings Account 10,000 on the building over a 25 year period and a zero salvaga/residual Accumu ated Depreciation on Buildings Account 10,000 value.

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Gatsby Inc Adjusting Enteries Adjusted Trial Balance Date Particulars Debit in Credit in For the per... View the full answer