At the end of 2016, Richards Company prepared a trial balance,recorded and posted its...

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Accounting

At the end of 2016, Richards Company prepared a trial balance,recorded and posted its adjusting entries, and then prepared anadjusted trial balance. Selected accounts and account balances fromthe trial balance and adjusted trial balance are as follows:
Partial Trial Balance
Partial Adjusted Trial Balance
(Debit)
(Credit)
(Debit)
(Credit)
Depreciation Expense $0 $3,960
Interest Payable $0 $810
Bad Debts Expense 0 410
Utilities Expense 1,480 1,682
Rental Revenue 1,650 2,635
Income Tax Expense 0 2,740
Prepaid Insurance 1,742 1,380
Office Salaries Payable 0 540
Rent Expense 0 800
Accumulated Depreciation 14,820 18,780
Interest Receivable 0 320
Prepaid Rent 1,600 800
Office Salaries Expense 5,600 6,140
Income Taxes Payable 0 2,740
Insurance Expense 300 662
Allowance for Doubtful Accounts 130 540
Interest Expense 0 810
Unearned Rent 600 0
Utilities Payable 0 202
Interest Revenue 620 940
Sales Salaries Expense 7,300 7,850
Office Supplies 1,150 700
Rent Receivable 0 385
Advances to Salespersons 770 220
Office Supplies Expense 0 450
Additional information:
1. Interest Receivable is due March 1, 2017
2. Interest Payable is due May 14, 2018
Required:
1. By comparing the partial trial balance to the partialadjusted trial balance, determine the adjusting entries that thecompany made on December 31, 2016. Prepare your answers in generaljournal form.
2. Assuming that the company uses reversing entries, indicatewhich adjusting entries should be reversed.

Answer & Explanation Solved by verified expert

4.4 Ratings (833 Votes)

1 The following are the adjustment entries RC made Dec 31 2016 Date Particulars Dr Amount Cr Amount Dec16 Depreciation Exp 3960 To Accumulated Dep 3960 to record the adjustment entry made for depreciation Dec16 Interest Exp 810 To Interest payable 810 to record at which is not yet paid will be credited Dec16 Bad Debts 410 To Allowance for Doubtful Debts 410 To See Answer

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In: AccountingAt the end of 2016, Richards Company prepared a trial balance,recorded and posted its adjusting...At the end of 2016, Richards Company prepared a trial balance,recorded and posted its adjusting entries, and then prepared anadjusted trial balance. Selected accounts and account balances fromthe trial balance and adjusted trial balance are as follows:Partial Trial BalancePartial Adjusted Trial Balance(Debit)(Credit)(Debit)(Credit)Depreciation Expense $0 $3,960Interest Payable $0 $810Bad Debts Expense 0 410Utilities Expense 1,480 1,682Rental Revenue 1,650 2,635Income Tax Expense 0 2,740Prepaid Insurance 1,742 1,380Office Salaries Payable 0 540Rent Expense 0 800Accumulated Depreciation 14,820 18,780Interest Receivable 0 320Prepaid Rent 1,600 800Office Salaries Expense 5,600 6,140Income Taxes Payable 0 2,740Insurance Expense 300 662Allowance for Doubtful Accounts 130 540Interest Expense 0 810Unearned Rent 600 0Utilities Payable 0 202Interest Revenue 620 940Sales Salaries Expense 7,300 7,850Office Supplies 1,150 700Rent Receivable 0 385Advances to Salespersons 770 220Office Supplies Expense 0 450Additional information:1. Interest Receivable is due March 1, 20172. Interest Payable is due May 14, 2018Required:1. By comparing the partial trial balance to the partialadjusted trial balance, determine the adjusting entries that thecompany made on December 31, 2016. Prepare your answers in generaljournal form.2. Assuming that the company uses reversing entries, indicatewhich adjusting entries should be reversed.