Exercise chapter 2
Question 1:
Requirements:
a. Journalize the adjusting entries
b. Prepare adjusted trial balance
c. Prepare financial statements
Question 2:
Requirements:
a. Journalize the adjusting entries
b. Prepare adjusted trial balance
c. Prepare financial statements
Question 3:
Paula Lee e-Travel
Unadjusted Trial Balance
as at 31 July 20X0
Cash at bank $24,800
Account Receivable $2,250
Supplies $700
Prepaid Rent $3,000
Furniture $16,500
Account Payable $13,100
Unearned Service Revenue $450
Paula Lee, Capital $31,250
Paula Lee, Drawings $3,200
Service Revenue 7,000
Salary Expense 950
Electricity and gas expense 400
Total 51,800 51,800
Adjustment data:
a. Prepaid rent expired, $1,000
b. Supplies on hand, $400
c. Depreciation on furniture, $275
d. Accrued salary expense, $950
e. Accrued service revenue, $250
f. Amount of unearned service revenue that has been earned $150
Required:
1. Journalize the adjusting entries at 31 July, the end of the accounting period in
the journals.
2. Prepare adjusted trial balance.
3. Prepare financial statements.
Question 4:
Journalize the adjusting entries for the following adjustments at 31 January, the end of
the accounting period
a. Depreciation expense not recorded, $700
b. Prepaid rent expired, $300
c. Interest expense accrued, $800
d. Employee salaries owed for Monday through Thursday of a five-day work week;
weekly payroll, $10,000
e. Unearned service revenue now earned, $500
Question 5:
Requirement: Journalize the adjusting entries for the following adjustments at 31 January,
the end of the accounting period