PSB3.6 Lou's Advertising Agency Pty Ltd was founded by Louise Lou in 2001. Presented here are both the adjusted and u i idjusted and unadjusted trial balances as of 31 December nancial sdtemont 2017. — sence ta iat od (045.57) eee pp geen nas: DVERTISING AGENCY PTY LTD” rialbalances ms ep enat December:2017. pates Unadjusted Adjusted No. Account name Dr & Dr cr oe $ 30800 $ 30800 110 Accounts Receivable 56000 60.200 130 Art Supplies 23520 14000 140 Prepaid Insurance 9380 7000 150 Printing Equipment 168.000 168000 151 Accumulated Depreciation $ 78400 $ 98000 200 Accounts Payable 14000 14000 220 Interest Payable 420 230 Advertising Revenue Received jin Advance 19600 15680 240 Salaries Payable 3.640 250 Bank Loan (long term) 14000 14000 300 Share Capital 56000 56000 310 Retained Earnings 15400 15400 311 Dividends 33600 33600 400 Advertising Revenue 164080 172200 500 Salaries Expense 28000 31640 505 Insurance Expense 2380 510 Interest Expense 980 1400 520 Depreciation Expense 19.600 530 Art Supplies Expense 9520 540 Rent Expense 11200 11200 $361 480 $389340 $389340 ‘Chapter 3: Accrual accounting concepts Prepare adjusting entries, and “financial statements; identify amRequired (@) Jouralise the annual adjusting entries that were made ()) Prepare a statement of profit or los and a calculation of retained earings forthe year ended 31 December 2017 and prepare a statement of nancial position as at 31 December 2017 (© Ideny which accounts should be dosed on 31 December. PE AAT bank loan was taken out 10 months ago, whats the annual interest rate on the loan? PE (ATi entty paid $31200 in salaries in 2017, what was the balance in Salaries Payable on 31 December 20167 > What isthe effect om profit as a result of these adjusting ents? Depart, adweé PSBS.7_The Palpatine Hotel Ld opened for business on 1 May 2016. A worksheet as, ‘TRimavtcrnmnena at 31 May 206 fr Palpatine Hote has been staned a follows. toetcom ot i Ae eek: Statement JAdusted wal Statement of] of financial “Ta balance _ | Adjusmens| balance —[proitorlss|_ postion No. Account name D | @ [prlo|mlololalo| a 100] Gash 3 4500 112 | Prepaid Insurance 2520 113 | supplies 2660 20 | Land 21000 122 | Bulldng ‘ys000 130 | Rurniure 23520, 200 | Accounts Payable S 6580 212 | Rent Rew. Reed in Advance 5000 220 | Mortgage Payable 0000 300 | Share capil 4000 $00 | Rent Revere 12650 505} Advenising Expense 700 510 | Blecuicty Expense 1400 525 | Salaries Expense 4200 Toa 38500 | 158500 {Inaction to those accounts sted on the al balance, the char of accounns for Palpatine Hotel also contains the following account: 123 Accumulated Depseciation—Blkling, 131 Accumulated Deprecation Furniture, 506 Depreciation Expense, 512 Insurance Expense, $15 Interest Expense, and 530 Supplies Expense ‘ier dat Insurance expires a the rate of $210 per month An inventory of supplies shows $1680 of unused supplies on 31 May “Anal deprecation ts $5040 on the bing ad $4200 on furniture The morgage interest rates 12%, Te mxtgage was taken Out on T May) $2100 ofthe Rent Revenue Received in Advance relates to May and is now eared, 6. Salaries of $120 anc paid at 31 May Required (G) tng information prose compete the shove worksheet. (A blank worksheet avalale within the course tanagernent sytem that accompanies the eX.) (©) Jouralise the adjusting ents on 31 Nay {o) Prepare the general lexger using accounts, Enter the wal balance amounts and 212 ean ecu prin. mus an sin mg — 8 ton3-6 (Adjusting Entries) Stephen King, D.DS,, opened a dental practice on January 1, 2010. During the first month of operations, the following transactions occurred. 11. Performed services for patients who had dental plan insurance. At January 31, $750 of such ser- vvices was earned but not yet billed to the insurance companies. 2. Utility expenses incurred but not paid prior to January 31 totaled $520. 3. Purchased dental equipment on January 1 for $80,000, paying, $20,000 in cash and signing a $60,000, 3.year note payable. The equipment depreciates $400 per month. Interest is $500 per month. 4. Purchased a one-year malpractice insurance policy on January 1 for $15,000. 5. Purchased $1,600 of dental supplies. On January 31, determined that $400 of supplies were on hand, Instructions Prepare the adjusting entries on January 31. (Omit explanations.) Account titles are: Accumulated Depreciation—Dental Equipment; Depreciation Expense; Service Revenue; Accounts Receivable; Insur- ance Expense; Interest Expense; Interest Payable; Prepaid Insurance; Supplies; Supplies Expense; Utli ties Expense; and Utilities Payable. E5.7 (Analyze Adjusted Data) _A partial adjusted tral balance of Safin Company at January 31,2010, shows the following [ ‘SAFIN COMPANY ‘ADJUSTED TRIAL BALANCE JANUARY 31, 2010 ars ‘Supplies © 900 Propaid Insurance 2.400 ‘Salaries Payable © 800 Unearnes Revenue 750 Supplies Expense 980 | Insurance Expense 400 | Salaries Expense 1,800 | Service Revenue 2,000 | Instructions Answer the following questions, assuming the year begins January 1 @) Ifthe amount in Supplies Expense is the January 31 adjusting entry, and £850 of supplies was pur- chased in January, what was the balance in Supplies on Janvary 1 () If the amount in Insurance Expense is the January 31 adjusting entry, and the original ins premium was for one year, what was the total premium and when was the policy purcha: (0 1F£2,700 of salaries was paid in January, what was the balance in Sulares Payable at December 21,2019? (@) If £1,600 was received in January for services performed in January, what was the balance in Unearned Revenue at December 31, 2009? (5) 228 (Adjusting Entries) Wiliam Bryant is the new owner of Ace Computer Services. At the end of + ‘August 2D, hs frat month of ownership, Bryant s tying to prepare monthly financial statement Below is some information related to unrecorded expenses that the business incurred during, August. 1, At August 31, Bryant owed his employees $2,900 in wages that will be paid on September 1 2. Atthe end of the month, he had not yet received the month’s utility bill. Based on past experience, he estimated the bill would be approximately $600. 3. On August 1, Bryant borrowed $60,000 from a local bank on a 15-year mortgage. The annual interest rate is 8%, 4. A telephone bill in the amount of $117 covering August charges is unpaid at August 31.128 - Chapter 3. The Accounting Information System lnstrctions Prepare tasting pura ens of August 31, 201, sugges by the norman onthe previous page BB E29 caging Entries) Selected accounts of Leno Company ae shove below sup ecsints Reto eo 6a) vo | 054 7 oar 200 ion 80 Sars Exerse Salas Poa Umum Serica Reverse Supple Expense oar ‘0 [1920 = aa 7 neat co From an analysis ofthe Faccouns,reconstuc (a) the Otober tansaction ets and (s) the aasting Journal ets that were made on Oxtaor I, 2010 Propane explanation foreach journal ety £3) F510 (Adjusting Entries) Uhura Resort opened for business on june 1 with eight at-conditioned unit, 1s trial balance on August 31 follows amount a ¥00). [ ‘UAURA RESORT cx Tras rep ewance “Sa j ‘Sires 2600 | fonaee ‘nom esas Payne ¥ 40 team Rt Avene Pret onoge Parse oo Share Coane 300 | Fars arege ° ert Ror co | Sse poe camo ues Speroe Same Pepa exper 3600 msm Bean Other dat 1. The balance in prepaid insurance is a one-year premium paid on June 1,200 An inventory count on August 3 shoes YOS0 of supplies on han 2 3 Annual deprecation ats ae colages (2%) and furniture (1%) Residual vale is estimated tobe Torco ost. 44 Uncarned Rent Revenue of ¥3800 was cared prior to August 3. 5. Solaris of YS were unpaid at August 3. {Rental of Y8O ered from tenants at August 3 2 The morgage notes dated 1/1/2010. The morgage interest rate is 8% pee yeas Instructions (6G) Jouralize the adjusting entries on August 3 for the 3month period June T-August 31. (Omit cexphnatons) (0) Prepare an juste wal Balance on August 3.