90.2K

Verified Solution

Link Copied!

A

B

D

F

G

H

I

Adjustments and the Worksheet $(35$ Points$)$

The date is December $31,2029$

Top Notch Security $($Owned by Byron Preston$)$

$\backslash$table$[[$Account$,$Unadjusted Trial Balance,Adjustments,Adjusted Trial Balance,$\backslash$table$[[$Income S$],[$Debit$,]]],[$Debit$,$Credit,Debit,Credit,Debit,Credit$],[$Cash$,84,355\mathrm{.}00,,,,,,],[$Accounts Receivable,$15,500\mathrm{.}00,,,,,,],[$Office Supplies,$1,950\mathrm{.}00,,,,,,],[$Prepaid Insurance, Automobile,$3,600\mathrm{.}00,,,,,,],[$Prepaid Rent,$10,000\mathrm{.}00,,,,,,],[$Security Equipment,$21,500\mathrm{.}00,,,,,,],[$Accumlated Depreciation, Security Equipment,,$8,000\mathrm{.}00,,,,,],[$Automobile$,55,000\mathrm{.}00,,,,,,],[$Accumulated Depreciation, Automobile,,$3,750\mathrm{.}00,,,,,],[$Building$,120,000\mathrm{.}00,,,,,,],[$Accounts Payable,,$25,650\mathrm{.}00,,,,,],[$Salaries Payable,,,,,,,$],[$B$.$ Preston, Capital,,$163,105\mathrm{.}00,,,,,],[$B$.$ Preston, Withdrawals,$7,500\mathrm{.}00,,,,,,],[$Securities Fees Earned,,$127,500\mathrm{.}00,,,,,],[$Investigating Fees Earned,,$52,600\mathrm{.}00,,,,,],[$Depreciation Expense, Security Equipment,$-,,,,,,],[$Depreciation Expense, Automobile,,,,,,,$],[$Salaries Expense,$28,750\mathrm{.}00,,,,,,],[$Gas Expense,$7,200\mathrm{.}00,,,,,,],[$Rent Expense,$20,000\mathrm{.}00,,,,,,],[$Insurance Expense,$3,000\mathrm{.}00,,,,,,],[$Office Supplies Expense,$2,250\mathrm{.}00,,,,,,],[$TOTALS$,380,605\mathrm{.}00,380,605\mathrm{.}00,,,,,],[,,,,,,,],[,,,,,,,],[,,,,,,,]]$

Use the following information to prepare the adjustments for the worksheet.

a$)$ The automobile insurance policy examination shows $$600$ has expired.

b$)$ A physical count of the office supplies shows a remaining value of $$1,200.$ Record the used amount.

c$)$ The estimated depreciation of security equipment is $$1,600.$

d$)$ The payroll of the company is done each Friday $($for the previous $5$ days$).$ December $31$ is on Tuesday. There are three employees and each employee makes $$170$ a day. An adjusting entry must be made to record the accrued salary for the days accrued for these employees.

e$)$ The automobile that Mr$.$ Preston uses to drive to the businesses of his clients cost $$55,000.$ He bought it in $2028.$ It is estimated that the car will last $4$ years and will be sold for $$25,000.$ The car is now $18$ months old. Record the depreciation for the car for $2029.$

f$)$ On November $1,$ Mr$.$ Preston paid $$10,000$ for $5$ months rent in advance. It is now Dec $31.$ Record the amount of rent expired.

Complete the full worksheet by extending the amounts to the Adjusted Trial Balance, Income Statement and the Balance Sheet columns. $(35$ Points$)$

Answer & Explanation Solved by verified expert

See Answer