Tutorial 3
P 4-10
LO2, LO3
Unifying Concepts: Adjusting Entries
The unadjusted and adjusted trial balances of Johnson Company as of December 31, 2022 are
shown below.
Unadjusted Adjusted
Debit Credit Debits Credit
Cash........................................... $ 97,500 $ 97,500
Accounts Receivable................ 96,500 96,500
Prepaid Rent............................. 20,500 5,500
Prepaid Insurance.................... 5,000 1,000
Accounts Payable...................... $ 79,000 $ 79,000
Salaries Payable........................ 12,000
Income Tax Payable.................. 1,200
Interest Payable......................... 1,200 2,000
Capital Stock.............................. 95,000 95,000
Retained Earnings..................... 3,200 3,200
Service Revenue....................... 250,000 250,000
Salaries Expense....................... 180,000 192,000
Rent Expense............................ 22,000 37,000
Insurance Expense.................... 1,200 5,200
Interest Expense ....................... 900 1,700
Income Tax Expense................. 4,800 _______ ___6,000 _______
Total........................................$428,400 $428,400 $442,400 $442,400
Required:
Prepare the journal entries that are required to adjust the accounts on December 31, 2022.
P 4-11
LO 4
Unifying Concepts: Closing Entries
Refer to P 4-10. Prepare the closing entries on December 31, 2022.
P 4-15
LO5
Unifying Concepts: The Accounting Cycle
The post-closing trial balance of Anderson Company at December 31, 2021, is shown here.
Anderson Company
Post-Closing Trial Balance
December 31, 2021
Debit Credit
Cash..................................................................................................... $ 15,000
.............................................................................................................
Accounts Receivable........................................................................... 20,000
.............................................................................................................
Land..................................................................................................... 180,000
.............................................................................................................
Accounts Payable................................................................................ $ 25,000
Notes Payable..................................................................................... 35,000
Capital Stock........................................................................................ 125,000
Retained Earnings............................................................................... 30,000
Totals................................................................................................ $215,000 $215,000
During 2022, Anderson Company had the following transactions:
a. Land purchases were $80,000, all on credit.
b. An additional $10,000 of capital stock was issued for cash.
c. Services were provided for $180,000; $100,000 was on credit and the balance was by cash.
d. The notes and the associated interest $7,000 were paid.
e. $105,000 was collected from customers.
f. $95,000 was paid to reduce accounts payable.
g. Salaries expense was $30,000, all paid in cash.
h. A $10,000 cash dividend was declared and paid.
Required:
1. Prepare journal entries to record each of the 2022 transactions.
2. Set up T-accounts with the proper balances at January 1, 2022, and post the journal entries to
the T-accounts.
3. Prepare a statement of comprehensive income for the year ended December 31, 2022, and a
balance sheet as of that date. Also prepare a statement of retained earnings.
4. Prepare the entries necessary to close the nominal accounts, including Dividends.
5. Post the closing entries to the ledger accounts [label (i) and (j)] and prepare a post-closing
trial balance at December 31, 2022.
