The schedule presents the trial balance for New Wave Dance Studio, Inc at the end of the current fiscal year. The following information is available to assist in the preparation of adjusting entries:
|
New Wave Dance Studio, Inc Trial Balance October 31, 2002 |
||
|
Cash |
RM 1,028 |
|
|
Account receivable |
517 |
|
|
Supplies |
170 |
|
|
Prepaid rent |
400 |
|
|
Prepaid Insurance |
360 |
|
|
Equipment |
9,100 |
|
|
Accumulated depreciation equipment |
|
RM 400 |
|
Account payable |
|
380 |
|
Unearned dance fees |
|
900 |
|
Common stock |
|
1,500 |
|
Retained earnings |
|
1,000 |
|
Dividends |
12,000 |
|
|
Dance fees |
|
25,995 |
|
Wage expenses |
3,200 |
|
|
Rent expenses |
2,200 |
|
|
Utility expenses |
1,200 |
|
|
RM 30,175 |
RM 30,175 |
|
The following information is available to assist in the preparation of adjusting entries:
- An inventory of supplies reveals RM92 still on hand.
- The prepaid rent reflects the rent for October plus the rent for the last month of lease.
- Prepaid insurance consists of a two year policy purchased on May1, 2002.
- Depreciation on equipment is estimated to be RM 800.
- Accrued wages are RM65 on October 31.
- Two third of the unearned dance fees have been earned by October 31.
- Management estimates federal income taxes for the year to be RM 3,000.
Instructions:
- Open the Column account in the trial balance.
- Determine adjusting entries and post them directly to the Column account.
- Prepare adjusted trial balance.
- Prepare Income Statements, statement of Retained Earnings, and Balance Sheet.