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The unadjusted trial balance for Swift Creek Engineering




Question;The unadjusted trial balance for Swift Creek Engineering at its year end, December 31, 2014, is as follows:SWIFT CREEK ENGINEERINGTrial BalanceDecember 31, 2014DebitCreditCash$8,000Accounts receivable6,450Supplies5,150Prepaid insurance7,560Notes receivable12,500Equipment26,700Accumulated depreciation?equipment$8,010Accounts payable5,000H. Duguay, capital43,350H. Duguay, drawings55,500Service revenue105,000Salaries expense39,500$161,360$161,360Additional information:1.Revenue of $1,550 was earned but unrecorded as at December 31, 2014.2.On June 1, the company purchased a one-year insurance policy.3.Depreciation on the equipment for 2014 is $2,670.4. A count on December 31, 2014, showed $710 of supplies on hand.5. The four-month, 4% note receivable was issued on October 1, 2014. Interest and principal are payable on the maturity date.Question 2The following is Elbow Cycle Repair Shop's trial balance at January 31, 2014, the company?s fiscal year end:ELBOW CYCLE REPAIR SHOPTrial BalanceJanuary 31, 2014DebitCreditCash$3,600Accounts receivable6,670Prepaid insurance6,420Supplies5,240Land55,000Building90,000Accumulated depreciation?building$11,000Equipment27,000Accumulated depreciation?equipment4,500Accounts payable7,100Unearned revenue1,990Mortgage payable102,400H. Dude, capital61,000H. Dude, drawings96,100Service revenue236,550Salaries expense116,200Utilities expense12,000Interest expense6,310$424,540$424,540Additional information:1.Service revenue earned but not recorded at January 31, 2014, was $1,550.2.The 12-month insurance policy was purchased on March 1, 2013.3.A physical count of supplies shows $580 on hand on January 31, 2014.4.The building has an estimated useful life of 45 years. The equipment has an estimated useful life of 15 years.5.Salaries of $1,520 are accrued and unpaid at January 31, 2014.6.The mortgage payable has a 6% interest rate. Interest is paid on the first day of each month for the previous month's interest.7. By January 31, 2014, $850 of the unearned revenue has been earned.8. During the next fiscal year, $4,500 of the mortgage payable is to be paid.Collapse question part(a)Prepare the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)DateAccount Titles and ExplanationDebitCreditJan. 31Accounts Receivable Service Revenue No Entry Interest Expense Unearned RevenueUnearned Revenue Interest Expense No Entry Accounts Receivable Service Revenue(To accrue revenue earned but not billed or collected)Jan. 31Insurance Expense Prepaid Insurance Interest Payable Salaries Expense No EntryPrepaid Insurance No Entry Insurance Expense Interest Payable Salaries Expense(To record insurance expired)Jan. 31No Entry Salaries Expense Supplies Expense Supplies Unearned RevenueSupplies Expense No Entry Supplies Salaries Expense Unearned Revenue(To record supplies used)Jan. 31Supplies Expense No Entry Accumulated Depreciation - Building Depreciation Expense Accumulated Depreciation - EquipmentAccumulated Depreciation - Building Accumulated Depreciation - Equipment Depreciation Expense No Entry Supplies ExpenseAccumulated Depreciation - Building Accumulated Depreciation - Equipment Supplies Expense No Entry Depreciation Expense(To record depreciation)Jan. 31Salaries Expense No Entry Prepaid Insurance Salaries Payable Interest ExpenseNo Entry Interest Expense Salaries Expense Salaries Payable Prepaid Insurance(To record accrued salaries)Jan. 31Interest Expense Interest Payable No Entry Insurance ExpenseNo Entry Interest Expense Interest Payable Insurance Expense(To record accrued interest)Jan. 31No Entry Unearned Revenue Interest Expense Service Revenue Accounts ReceivableNo Entry Service Revenue Accounts Receivable Interest Expense Unearned Revenue(To record revenue for services provided)


Paper#39197 | Written in 18-Jul-2015

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