Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

Review the unadjusted trial balance below and prepare adjusting journal entries to record the varibelow. Record in the space provided at the bottom of this spreadsheet.

/in /by
Review the unadjusted trial balance below and prepare adjusting journal entries to record the various described items
below.  Record in the space provided at the bottom of this spreadsheet.  After completing journal entries, complete the
adjusted trial balance below.  Lastly complete the income statement, balance sheet and statement of retained earnings.
The balance sheet must balance.  The accounting equation is Assets = Liabilities + Equity.
      
Baltimore Corporation
Unadjusted Trial Balance
January 31, 2016
      
  Debits Credits 
  Cash   $           37,500   $                    –  
  Accounts receivable              12,410                         –  
  Prepaid insurance                2,400                         –  
  Supplies inventory                7,113                         –  
  Equipment              35,000                         –  
  Accumulated depreciation                       –                10,000  
  Accounts payable                       –                  7,569  
  Salaries payable                       –                         –  
  Interest payable                       –                         –  
  Unearned revenue                       –                  8,500  
  Loan payable                       –                11,500  
  Capital stock                       –                25,000  
  Retained earnings, Jan. 1                       –                15,457  
  Revenues                       –                43,995  
  Depreciation expense                       –                         –  
  Interest expense                       –                         –  
  Insurance expense                       –                         –  
  Office expense                2,500                         –  
  Rent expense              13,000                         –  
  Salary expense              12,098                         –  
  Supplies expense                       –                         –  
  Utilities expense                       –                         –  
   $         122,021   $          122,021  
      
1Belair Corporation’s equipment had an original life of 140 months, and the straight-line depreciation method is used.


As of January 1, the equipment was 40 months old.  The equipment will be worthless at the end of its useful life.


2As of the end of the month, Belair Corporation has provided services to customers for which the earnings process is complete.

Formal billings are normally sent out on the first day of each month for the prior month’s work.  January’s unbilled work is $25,000.

3Utilities used during January, for which bills will soon be forthcoming from providers, are estimated at $1,500.

4A review of supplies on hand at the end of the month revealed items costing $3,500.


5The $2,400 balance in prepaid insurance was for a 6-month policy running from January 1 to June 30.

6The unearned revenue was collected in December of 2014.  60% of that amount was actually earned in January, with the remainder to be earned in February.


7The loan accrues interest at 1% per month.  No interest was paid in January.


8At month end, salaries of $2,120 have been earned but not paid.
JE # ACCOUNT  DEBIT CREDIT 
1
2
3
4
5
6
7
8
      
Baltimore Corporation
Adjusted Trial Balance
January 31, 2016
      
  Debits Credits 
  Cash      
  Accounts receivable     
  Prepaid insurance     
  Supplies inventory     
  Equipment     
  Accumulated depreciation     
  Accounts payable     
  Salaries payable     
  Interest payable     
  Unearned revenue     
  Loan payable     
  Capital stock     
  Retained earnings, Jan. 1     
  Revenues     
  Depreciation expense     
  Insurance expense     
  Interest expense     
  Office expense     
  Rent expense     
  Salary expense     
  Supplies expense     
  Utilities expense     
   $                   –   $                    –  
      
      
Baltimore Corporation
Income Statement
For the month ended January 31, 2016
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
Baltimore Corporation
Balance Sheet
January 31, 2016
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
Baltimore Corporation
Statement of Retained Earnings
As of January 31, 2015
      
      
      
      
      
      
      
      
 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"