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Complete the six-column table by entering adjustments that reflect the following information




Complete the six-column table by entering adjustments that reflect the following information;a. As of December 31, 2005, employees had earned $900 of unpaid and unrecorded salaries. The;next payday is January 4, at which time $1,600 of salaries will be paid.;b. The cost of supplies still available at December 31, 2005, is $2,700.;c. The notes payable requires an interest payment to be made every three months. The amount;of unrecorded accrued interest at December 31, 2005, is $1,250. The next interest payment;at an amount of $1,500, is due on January 15, 2006.;d. Analysis of the unearned member fees account shows $5,600 remaining unearned at December;31, 2005.;e. In addition to the member fees included in the revenue account balance, the company has earned;another $9,100 in unrecorded fees that will be collected on January 31, 2006. The company;is also expected to collect $8,000 on that same day for new fees earned in January 2006.;f. Depreciation expense for the year is $12,500.;2. Use the work sheet to enter the adjusting and closing entries, then journalize them.;3. Prepare the income statement and the statement of owner?s equity for the year ended June 30 and;the classified balance sheet at June 30, 2005.;Analysis Component;4. Analyze the following separate errors and describe how each would affect the 10-column work;sheet. Explain whether the error is likely to be discovered in completing the work sheet and, if;not, the effect of the error on the financial statements.;a. Assume that the adjustment for supplies used consisted of a credit to Supplies for $3,200 and;a debit for $3,200 to Supplies Expense.;b. When the adjusted trial balance in the work sheet is completed, the $17,500 Cash balance is;incorrectly entered in the Credit column.;166 Chapter 4 Completing the Accounting Cycle;Check (3) Total assets, $120,250;current liabilities, $14,290, Net income;$39,300;Check (1) Adjusted trial balance;totals, $224,000;Bullseye Ranges;December 31,2005;Account Title Unadjusted Adjustments Adjusted;Trial Balance Trial Balance;DR CR DR CR DR CR;Cash?????????????..$13,000;Accounts receivable????? 0;Supplies???????????..$5,500;Equipment?????????$130,000;ACCUMULATED DEPRECIATION;Equipment???????????????????$25,000;Interest payable???????????????..0;Salaries payable????????????????.0;Unearned member fees???????????..$14,000;Notes payable?????????????????..$50,000;T. Allen Capital?????????????????..$58,250;T. Allen withdrawls??????$20,000;Member fees earned?????????????.$3,000;DEPRECIATION EXPENSES;Equipment???????????0;Salaries expense??????..$28,000;Interest expense??????.$3,750;Supplies expense??????0;Totals??????????$200,250 $200,250


Paper#27144 | Written in 18-Jul-2015

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