The
following six-column table for Bullseye Ranges includes the unadjusted trial
balance as of December 31,2005
Required
1.
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
SOLUTION
PREVIEW
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Part 1
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bullseye RANGES
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31-Dec-11
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Unadjusted
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Adjusted
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Trial Balance
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Adjustments
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Trial Balance
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Cash
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13,000
|
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13,000
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Accounts receivable
|
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(e)
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9,100
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9,100
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Supplies
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5,500
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(b)
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2,800
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2,700
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Equipment
|
130,000
|
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|
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130,000
|
|
File
name: 4-6A-Bullseye-range.xls
File type: XLS Price: $10
