ACCT 220 Homework Problems
Key To Success
ACCT 220 Homework Problems
| Review the unadjusted trial balance below and prepare adjusting journal entries to record the various described items | |||||||||||||
| below. Record in the space provided at the bottom of this spreadsheet. After completing journal entries, complete the | |||||||||||||
| adjusted trial balance below. Lastly complete the income statement, balance sheet and statement of retained earnings. | |||||||||||||
| The balance sheet must balance. The accounting equation is Assets = Liabilities + Equity. | |||||||||||||
| Baltimore Corporation | |||||||||||||
| Unadjusted Trial Balance | |||||||||||||
| January 31, 2016 | |||||||||||||
| unadjusted trial balance, | Debits | Credits | |||||||||||
| Cash | $ 37,500 | $ – | |||||||||||
| Accounts receivable | 12,410 | – | |||||||||||
| Prepaid insurance | 2,400 | – | |||||||||||
| Supplies inventory | 7,113 | – | |||||||||||
| Equipment | 35,000 | – | |||||||||||
| Accumulated depreciation | – | 10,000 | |||||||||||
| Accounts payable | – | 7,569 | |||||||||||
| Salaries payable | – | – | |||||||||||
| Interest payable | – | – | |||||||||||
| Unearned revenue | – | 8,500 | |||||||||||
| Loan payable | – | 11,500 | |||||||||||
| Capital stock | – | 25,000 | |||||||||||
| Retained earnings, Jan. 1 | – | 15,457 | |||||||||||
| Revenues | – | 43,995 | |||||||||||
| Depreciation expense | – | – | |||||||||||
| Interest expense | – | – | |||||||||||
| Insurance expense | – | – | |||||||||||
| Office expense | 2,500 | – | |||||||||||
| Rent expense | 13,000 | – | |||||||||||
| Salary expense | 12,098 | – | |||||||||||
| Supplies expense | – | – | |||||||||||
| Utilities expense | – | – | |||||||||||
| $ 122,021 | $ 122,021 | ||||||||||||
| 1 | Belair Corporation’s equipment had an original life of 140 months, and the straight-line depreciation method is used. | ||||||||||||
| As of January 1, the equipment was 40 months old. The equipment will be worthless at the end of its useful life. | |||||||||||||
| 2 | As of the end of the month, Belair Corporation has provided services to customers for which the earnings process is complete. | ||||||||||||
| Formal billings are normally sent out on the first day of each month for the prior month’s work. January’s unbilled work is $25,000. | |||||||||||||
| 3 | Utilities used during January, for which bills will soon be forthcoming from providers, are estimated at $1,500. | ||||||||||||
| 4 | A review of supplies on hand at the end of the month revealed items costing $3,500. | ||||||||||||
| 5 | The $2,400 balance in prepaid insurance was for a 6-month policy running from January 1 to June 30. | ||||||||||||
| 6 | The unearned revenue was collected in December of 2014. 60% of that amount was actually earned in January, with the remainder to be earned in February. | ||||||||||||
| 7 | The loan accrues interest at 1% per month. No interest was paid in January. | ||||||||||||
| 8 | At month end, salaries of $2,120 have been earned but not paid. | ||||||||||||
| JE # | ACCOUNT | DEBIT | CREDIT | ||||||||||
| 1 | |||||||||||||
| 2 | |||||||||||||
| 3 | |||||||||||||
| 4 | |||||||||||||
| 5 | |||||||||||||
| 6 | |||||||||||||
| 7 | |||||||||||||
| 8 | |||||||||||||
| Baltimore Corporation | |||||||||||||
| Adjusted Trial Balance | |||||||||||||
| January 31, 2016 | |||||||||||||
| Debits | Credits | ||||||||||||
| Cash | |||||||||||||
| Accounts receivable | |||||||||||||
| Prepaid insurance | |||||||||||||
| Supplies inventory | |||||||||||||
| Equipment | |||||||||||||
| Accumulated depreciation | |||||||||||||
| Accounts payable | |||||||||||||
| Salaries payable | |||||||||||||
| Interest payable | |||||||||||||
| Unearned revenue | |||||||||||||
| Loan payable | |||||||||||||
| Capital stock | |||||||||||||
| Retained earnings, Jan. 1 | |||||||||||||
| Revenues | |||||||||||||
| Depreciation expense | |||||||||||||
| Insurance expense | |||||||||||||
| Interest expense | |||||||||||||
| Office expense | |||||||||||||
| Rent expense | |||||||||||||
| Salary expense | |||||||||||||
| Supplies expense | |||||||||||||
| Utilities expense | |||||||||||||
| $ – | $ – | ||||||||||||
| Baltimore Corporation | |||||||||||||
| Income Statement | |||||||||||||
| For the month ended January 31, 2016 | |||||||||||||
| Baltimore Corporation | |||||||||||||
| Balance Sheet | |||||||||||||
| January 31, 2016 | |||||||||||||
| Baltimore Corporation | |||||||||||||
| Statement of Retained Earnings | |||||||||||||
| As of January 31, 2015 | |||||||||||||
ACCT 220 Homework Problems
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