COMPLETING THE ACCOUNTING CYCLE

Oscar Company maintains and repairs warning lights, such as those found in tall
buildings, radio towers, lighthouses, airport runway lights, and others. The following is
the unadjusted trial balance of Oscar Company for the year ended July 31, 213.
OSCAR COMPANY
Unadjusted Trial Balance
as at Jul !"# $%"!

&e'it Credit
Cash !1",#
$ccounts recei%able 3,#
&repaid insurance 3,
'upplies 1,(#
)*uipment +1,"
$ccumulated depreciation , e*uipment !-,.
/uilding 1,#
$ccumulated depreciation , building +1,+
0and 12,
$ccounts payable ",1
1nearned rent 1,#
Capital stoc2 1,
3etained earnings #,+
4i%idends ",
5ees re%enue 1.1,2
'alary and wages e6pense +3,2
$d%ertising e6pense 1#,#
1tilities e6pense .,1
3epair e6pense (,3#
!"2#, !"2#,
$dditional information needed to adjust the accounts is7
1. 5ees re%enue earned at July 31 is !#,, collection is e6pected to be in $ugust.
2. 8nsurance e6pired during the year is !2,#.
3. 'upplies on hand at July 31 are !3#.
". 4epreciation on e*uipment for the year was estimated at !2,1-.
#. 4epreciation on building for the year was estimated at !1,#2.
-. 1npaid salaries earned by employees amounted to !2,..
+. 1nearned rent at July 31 is !#.
Re(uired)
a9 &repare the necessary adjusting entries for the year :)6planation is re*uired9
b9 &repare a 1,column wor2sheet.
c9 &repare the 8ncome 'tatement and the 'tatement of Owner;s )*uity for the
period ended July 31, 213.
d9 &repare the /alance 'heet as at July 31, 213.
e9 &repare closing entries :8n general journal format only.9 Omit e6planations.
f9 &repare a post,closing trial balance as at July 31, 213
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