Finance: Generally Accepted Accounting Principles and Debits Credits Cash Essay

Submitted By mcook21
Words: 321
Pages: 2

Accounting 301
Intermediate Accounting I
Adjusting Entries Review Handout
Professor Mitschow

The trial balance of Garcia’s Irish Pub (formerly a real place) at the end of the year on 12/31/02 is provided below.

Debits Credits
Cash $127,760
Accounts Receivable 11,120
Supplies 24,000
Equipment 63,600
Accounts Payable 26,480
Note Payable 20,000
Unearned Rent 7,200
Common Stock 80,000
Retained Earnings 100,800
Dividends 56,000
Commission Revenue 252,400
Rent Revenue 26,000
Utilities Expense 16,000
Salaries Expense 214,400

Total $512,880 $512,880

Analysis reveals the following additional information:

1.) Supplies totaling $8,600 remain on 12/31/02.
2.) The note payable was issued on 9/30/02 at an interest rate of 12%.
3.) One-third of the unearned rent been earned.
4.) Depreciation expense amounted to $3,000.
5.) Workers are paid a total of $450 per day. Four days wages have accrued at 12/31/02.

Given this information, please answer the following questions. Use the back of the page if necessary.

1.) Given the information provided above, please produce the necessary adjusting entries (10 points).

Supplies Exp 15,400 Supplies 15,400

Interest Exp 600 Interest Payable 600

Unearned Rent 2,400 Rent Revenue 2,400

Depreciation Expense 3,000 Accumulated Depreciation 3,000

Salaries Expense 1,800 Salaries Payable 1,800

2.) Produce the adjusted trial balance in the empty columns below. Add…