| ACCT 220 Week 2 Homework Problemsthe unadjusted trial balance below and prepare adjusting journal entries to record the various described items |
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| below. Record in the space provided at the bottom of this spreadsheet. After completing journal entries, complete the |
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| adjusted trial balance below. Lastly complete the income statement, balance sheet and statement of retained earnings. |
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| The balance sheet must balance. The accounting equation is Assets = Liabilities + Equity. |
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Baltimore Corporation |
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Unadjusted Trial Balance |
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January 31, 2016 |
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unadjusted trial balance, |
Debits |
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Credits |
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Cash |
$ 37,500 |
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$ – |
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Accounts receivable |
12,410 |
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– |
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Prepaid insurance |
2,400 |
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Supplies inventory |
7,113 |
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– |
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Equipment |
35,000 |
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Accumulated depreciation |
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10,000 |
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Accounts payable |
– |
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7,569 |
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Salaries payable |
– |
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– |
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Interest payable |
– |
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– |
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Unearned revenue |
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8,500 |
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Loan payable |
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11,500 |
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Capital stock |
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25,000 |
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Retained earnings, Jan. 1 |
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15,457 |
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Revenues |
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43,995 |
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Depreciation expense |
– |
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– |
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Interest expense |
– |
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– |
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Insurance expense |
– |
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– |
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Office expense |
2,500 |
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Rent expense |
13,000 |
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Salary expense |
12,098 |
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– |
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Supplies expense |
– |
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– |
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Utilities expense |
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– |
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$ 122,021 |
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$ 122,021 |
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| 1 |
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Belair Corporation’s equipment had an original life of 140 months, and the straight-line depreciation method is used. |
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As of January 1, the equipment was 40 months old. The equipment will be worthless at the end of its useful life. |
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| 2 |
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As of the end of the month, Belair Corporation has provided services to customers for which the earnings process is complete. |
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Formal billings are normally sent out on the first day of each month for the prior month’s work. January’s unbilled work is $25,000. |
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| 3 |
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Utilities used during January, for which bills will soon be forthcoming from providers, are estimated at $1,500. |
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| 4 |
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A review of supplies on hand at the end of the month revealed items costing $3,500. |
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| 5 |
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The $2,400 balance in prepaid insurance was for a 6-month policy running from January 1 to June 30. |
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| 6 |
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The unearned revenue was collected in December of 2014. 60% of that amount was actually earned in January, with the remainder to be earned in February. |
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| 7 |
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The loan accrues interest at 1% per month. No interest was paid in January. |
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| 8 |
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At month end, salaries of $2,120 have been earned but not paid. |
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| JE # |
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ACCOUNT |
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DEBIT |
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CREDIT |
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Baltimore Corporation |
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Adjusted Trial Balance |
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January 31, 2016 |
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Debits |
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Credits |
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Cash |
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Accounts receivable |
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Prepaid insurance |
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Supplies inventory |
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Equipment |
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Accumulated depreciation |
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Accounts payable |
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Salaries payable |
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Interest payable |
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Unearned revenue |
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Loan payable |
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Capital stock |
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Retained earnings, Jan. 1 |
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Revenues |
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Depreciation expense |
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Insurance expense |
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Interest expense |
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Office expense |
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Rent expense |
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Salary expense |
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Supplies expense |
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Utilities expense |
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$ – |
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$ – |
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Baltimore Corporation |
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Income Statement |
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For the month ended January 31, 2016 |
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Baltimore Corporation |
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Balance Sheet |
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January 31, 2016 |
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Baltimore Corporation |
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Statement of Retained Earnings |
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As of January 31, 2015 |
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