Using the information provided in P4- 6, perform the following steps for Tides Tea Company:
In P4-6

Required
a. Journalize and post adjusting journal entries based on the following additional information:
€¢ At December 31, interest in the amount of $ 2,600 has accrued on the note payable but has not yet been recorded. This amount will be paid on January 31, 2016.
€¢ The rent payment made on February 28 was for a twelve- month lease covering March 1, 2015 to February 29, 2016.
€¢ Straight- line depreciation for the full year should be recorded on the equipment purchased on February 1. The equipment has a 15- year life and no residual value.
€¢ A total of $ 6,000 of supplies remains on hand at the end of the year.
€¢ Wage payments in the amount of $ 62,000 must be accrued at year- end.
€¢ On December 14, Tides received a utilities bill in the amount of $ 6,200 for the month of November that has not yet been recorded. The amount will be paid in January 2016.
b. Prepare an adjusted trial balance as of December 31.
c. Prepare a single- step income statement, a statement of shareholders€™ equity, and a balance sheet.

Transcribed Image Text:

Chart of Accounts Account Title Group Account # 100: Assets 101 102 103 104 110 112 Cash Accounts Recaivable Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment 200: Liabilities 201 203 210 220 Accounts Payable Wages Payable Interest Payable Notes Payable 300: Equity 301 310 320 Common Stock Retained Earnings Dividends 400: Revenues 401 Sales Revenue 500: Expenses 501 502 503 Wage Expense Utilities Expense Rent Expense Chart of Accounts Account Title Account # 504 505 506 510 520 Group Administrative Expense Insurance Expense Supplies Expense Depreciation Expense-Equipment Interest Expense 600: Other 601 Income Summary