MBA UNIT 2 ASSIGNMENT 2 P4-7,100% CORRECT

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MBA UNIT 2 ASSIGNMENT 2 P4-7 P4-7 Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Tunstall, Inc., a small service company, keeps its records wi ... thout the help of an accountant. After much effort, prepared the following unadjusted trial balance as of the end of the annual accounting period, December 31, 2 Account Titles Debit Credit Cash $ 42,000 Accounts receivable 11,600 Supplies 900 Prepaid insurance 800 Service trucks 19,000 Accumulated depreciation $ 9,200 Other assets 8,300 Accounts payable 3,000 Wages payable Income taxes payable Note payable (3 years; 10% interest due each December 31) 17,000 Common stock (5,000 shares outstanding) 400 Additional paid-in capital 19,000 Retained earnings 6,000 Service revenue 61,360 Remaining expenses (not detailed; excludes income tax) 33,360 Income tax expense Totals $ 115,960 $ 115,960 Data not yet recorded at December 31, 2014, included: a. The supplies count on December 31, 2014, reflected $300 remaining supplies on hand to be use b. Insurance expired during 2014, $800. c. Depreciation expense for 2014, $3,700. d. Wages earned by employees not yet paid on December 31, 2014, $640. e. Income tax expense, $5,540. Required: 1 Record the 2014 adjusting entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Transaction General Journal Debit Credit a. Supplies expense 600 Supplies 600 b. Insurance Expense 800 Prepaid insurance 800 c. Depreciation expense 3,700 Accumulated depreciation 3,700 d. Wages expense 640 Wages payable 640 e. Income taxes expense 5,540 Income taxes payable 5,540 Required: 2-a. Prepare an income statement that includes the effects of the preceding five transactions. (Round "Earnings per share" to 2 decimal places.) TUNSTALL, INC. Income Statement For the Year Ended December 31, 2014 Operating revenue: Service revenue $ 61,360 Operating expenses: Depreciation expense 3,700 Interest expense 800 Supplies 600 Wages expense 640 Remaining expenses (not detailed) 33,360 Total expenses 39,100 Operating income 22,260 Income taxes expense 5,540 Net income $ 16,720 Earnings per share $ 3.34 Required: 2-b. Prepare a classified balance sheet that includes the effects of the preceding five transactions. (Amounts to be deducted should be indicated by a minus sign.) Required: 3 Record the 2014 closing entry. (If no entry is required for a transaction/event, select "No jour Transaction General Journal Debit Credit 1 Service revenue 61,360 Depreciation expense 3,700 Income taxes expense 5,540 Insurance expense 800 Remaining expenses (not detailed) 33,360 Retained earnings 16,720 Supplies 600 Wages expense 640 Earnings per Share LO4-1, 4-2, 4-4 an outside accountant 014: d in 2015. TUNSTALL, INC. Balance Sheet At December 31, 2014 Assets Liabilities and Stockholders’ Equity Current assets: Current liabilities: Cash 42,000 Accounts payable 3,000 Accounts receivable 11,600 Wages payable 640 Supplies 300 Income taxes payable 5,540 Total current assets 53,900 Total current liabilities 9,180 Notes payable, long-term 17,000 Service trucks 19,000 Accumulated depreciation (12,900) Total liabilities 26,180 Other assets 8,300 Stockholders' equity: Additional paid-in capital 19,000 Common Stock 400 Retained earnings 22,720 Total stockholders' equity 42,120 Total assets $ 68,300 Total liabilities and stockholders' equity $ 68,300 nal entry required" in the first account field.) P4-7 Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After muc prepared the following unadjusted trial balance as of the end of the annual accounting period, Decem Account Titles Debit Credit Cash $ 42,000 Accounts receivable 11,600 Supplies 900 Prepaid insurance 800 Service trucks 19,000 Accumulated depreciation $ 9,200 Other assets 8,300 Accounts payable 3000 Wages payable Income taxes payable Note payable (3 years; 10% interest due each December 31) 17000 Common stock (5,000 shares outstanding) 400 Additional paid-in capital 19000 Retained earnings 6000 Service revenue 61360 Remaining expenses (not detailed; excludes income tax) 33,360 Income tax expense Totals $ 115,960 $ 115,960 Data not yet recorded at December 31, 2014, included: a. The supplies count on December 31, 2014, reflected $300 remaining supplies on hand t b. Insurance expired during 2014, $800. c. Depreciation expense for 2014, $3,700. d. Wages earned by employees not yet paid on December 31, 2014, $640. e. Income tax expense, $5,540. Required: 1 Record the 2014 adjusting entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Transaction General Journal Debit Credit a. b. c. d. e. Required: 2-a. Prepare an income statement that includes the effects of the preceding five transacti (Round "Earnings per share" to 2 decimal places.) TUNSTALL, INC. Income Statement For the Year Ended December 31, 2014 Operating revenue: Operating expenses: Total expenses - Net income $16,720 Earnings per share Required: 2-b. Prepare a classified balance sheet that includes the effects of the preceding five trans (Amounts to be deducted should be indicated by a minus sign.) Required: 3 Record the 2014 closing entry. (If no entry is required for a transaction/event, select Transaction General Journal Debit Credit 1 Including Earnings per Share LO4-1, 4-2, 4-4 h effort, an outside accountant ber 31, 2014: o be used in 2015. ons. actions. TUNSTALL, INC. Balance Sheet At December 31, 2014 Assets Liabilities and Stockholders’ Equity Current assets: Current liabilities: Total current assets - Total current liabilities - Total liabilities - Stockholders' equity: Total stockholders' equity - Total assets $ - Total liabilities and stockholders' equity $ - "No journal entry required" in the first account field.) [Show More]

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