Accounting

SHARP CONSTRUCTION
Adjusted Trial Balance

December 31, 2011

No. Account Title Debit Credit

101 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,000

104 Short-term investments . . . . . . . . . . . . . . . . . . . . . 22,000

126 Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,100

128 Prepaid insurance . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000

167 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,000

168 Accumulated depreciation—Equipment . . . . . . . . $ 20,000

173 Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,000

174 Accumulated depreciation—Building . . . . . . . . . . 55,000

183 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000

201 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . 15,500

203 Interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500

208 Rent payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500

210 Wages payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500

213 Property taxes payable . . . . . . . . . . . . . . . . . . . . . . 800

233 Unearned professional fees . . . . . . . . . . . . . . . . . . 6,500

251 Long-term notes payable . . . . . . . . . . . . . . . . . . . . 66,000

301 J. Sharp, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,700

302 J. Sharp, Withdrawals . . . . . . . . . . . . . . . . . . . . . . . 12,000

401 Professional fees earned . . . . . . . . . . . . . . . . . . . . 96,000

406 Rent earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,000

407 Dividends earned . . . . . . . . . . . . . . . . . . . . . . . . . . 1,900

409 Interest earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000

606 Depreciation expense—Building . . . . . . . . . . . . . . 10,000

612 Depreciation expense—Equipment . . . . . . . . . . . . 5,000

623 Wages expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,000

633 Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,100

637 Insurance expense . . . . . . . . . . . . . . . . . . . . . . . . . 9,000

640 Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,400

652 Supplies expense . . . . . . . . . . . . . . . . . . . . . . . . . . 6,400

682 Postage expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,200

683 Property taxes expense . . . . . . . . . . . . . . . . . . . . . 4,000

684 Repairs expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,900

688 Telephone expense . . . . . . . . . . . . . . . . . . . . . . . . 2,200

690 Utilities expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,600

Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $363,900 $363,900

The adjusted trial balance for Sharp Construction as of December 31, 2011, follows.

wiL10874_ch04_136-177.indd Page 167 8/2/10 4:48:52 PM user-f500wiL10874_ch04_136-177.indd Page 167 8/2/10 4:48:52 PM user-f500 /Users/user-f500/Desktop/Users/user-f500/Desktop

J. Sharp invested $50,000 cash in the business during year 2011 (the December 31, 2010, credit balance
of the J. Sharp, Capital account was $32,700). Sharp Construction is required to make a $6,600 payment
on its long-term notes payable during 2012.

Required

1. Prepare the income statement and the statement of owner’s equity for the calendar year 2011 and the
classified balance sheet at December 31, 2011.

2. Prepare the necessary closing entries at December 31, 2011.
3. Use the information in the financial statements to compute these ratios: (a) return on assets (total

assets at December 31, 2010, was $200,000), (b) debt ratio, (c) profit margin ratio (use total revenues
as the denominator), and (d ) current ratio.

Required

1. Prepare a 10-column work sheet for fiscal year 2011, starting with the unadjusted trial balance and
including adjustments based on these additional facts.
a. The supplies available at the end of fiscal year 2011 had a cost of $3,200.
b. The cost of expired insurance for the fiscal year is $3,900.
c. Annual depreciation on equipment is $8,500.
d. The June utilities expense of $550 is not included in the unadjusted trial balance because the bill

arrived after the trial balance was prepared. The $550 amount owed needs to be recorded.
e. The company’s employees have earned $1,600 of accrued wages at fiscal year-end.
f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $200.
g. Additional property taxes of $900 have been assessed for this fiscal year but have not been paid or

recorded in the accounts.

$ 17,500
8,900
6,200

131,000

30,000

0
45,860
2,640

0
13,200

0
4,600
2,810
4,000

$266,710

$ 25,250
5,800

0
0
0
0

24,000
77,660

134,000

$266,710

101
126
128
167
168
201
203
208
210
213
251
301
302
401
612
623
633
637
640
652
683
684
690

Cash
Supplies
Prepaid insurance
Equipment
Accumulated depreciation—Equipment
Accounts payable
Interest payable
Rent payable
Wages payable
Property taxes payable
Long-term notes payable
S. Adams, Capital
S. Adams, Withdrawals
Construction fees earned
Depreciation expense—Equipment
Wages expense
Interest expense
Insurance expense
Rent expense
Supplies expense
Property taxes expense
Repairs expense
Utilities expense
Totals

Account Title Debit CreditNo.

8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

1
2
3
4
5
6
7

A B C D

ADAMS CONSTRUCTION CO.
Unadjusted Trial Balance

June 30, 2011

The following unadjusted trial balance is for Adams Construction Co. as of the end of its 2011 fiscal year.
The June 30, 2010, credit balance of the owner’s capital account was $52,660, and the owner invested
$25,000 cash in the company during the 2011 fiscal year.

wiL10874_ch04_136-177.indd Page 168 7/31/10 5:21:02 PM user-f500wiL10874_ch04_136-177.indd Page 168 7/31/10 5:21:02 PM user-f500 /Users/user-f500/Desktop/Users/user-f500/Desktop

h. The long-term note payable bears interest at 12% per year. The unadjusted Interest Expense
account equals the amount paid for the first 11 months of the 2011 fiscal year. The $240 accrued
interest for June has not yet been paid or recorded. (The company is required to make a $5,000
payment toward the note payable during the 2012 fiscal year.)

2. Enter adjusting and closing information in the work sheet; then journalize the adjusting and closing
entries.

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, 2011.

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 and a debit to

Supplies Expense for $3,200, when the correct amount was $5,700.
b. When the adjusted trial balance in the work sheet is completed, assume that the $17,500 Cash bal-

ance is incorrectly entered in the Credit column.

The following six-column table for Bullseye Ranges includes the unadjusted trial balance as of
December 31, 2011.

$ 13,000
0

5,500
130,000

20,000

0
28,000
3,750

0
$200,250

$ 25,000
0
0

14,000
50,000
58,250

53,000

$200,250

Account Title

Unadjusted
Trial Balance

Adjusted
Trial Balance

Dr.
Adjustments

Cr. Dr. Cr.Dr. Cr.

8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

1
2
3
4
5
6
7

A B C D E F G

BULLSEYE RANGES
December 31, 2011

Cash
Accounts receivable
Supplies
Equipment
Accumulated depreciation—Equipment
Interest payable
Salaries payable
Unearned member fees
Notes payable
T. Allen, Capital
T. Allen, Withdrawals
Member fees earned
Depreciation expense—Equipment
Salaries expense
Interest expense
Supplies expense
Totals

Required

1. Complete the six-column table by entering adjustments that reflect the following information.
a. As of December 31, 2011, 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, 2011, 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, 2011, is $1,250. The next interest payment, at an
amount of $1,500, is due on January 15, 2012.

d. Analysis of the unearned member fees account shows $5,600 remaining unearned at December 31,
2011.

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, 2012. The company is also
expected to collect $8,000 on that same day for new fees earned in January 2012.

f. Depreciation expense for the year is $12,500.

wiL10874_ch04_136-177.indd Page 169 8/13/10 7:42:44 PM user-f500wiL10874_ch04_136-177.indd Page 169 8/13/10 7:42:44 PM user-f500 /Users/user-f500/Desktop/TEMPWORK/Don’tDelete_Jobs/MHDQ251:Beer:201/ch04/Users/user-f500/Desktop/TEMPWORK/Don’tDelete_Jobs/MHDQ251:Beer:201/ch04

2. Prepare journal entries for the adjustments entered in the six-column table for part 1.
3. Prepare journal entries to reverse the effects of the adjusting entries that involve accruals.
4. Prepare journal entries to record the cash payments and cash collections described for January.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 929 473-0077

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code GURUH