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The unadjusted trial balance of Property Incorporated appears below as of December 31, 2019
Property Incorporated
Unadjusted Trial Balance
December 31, 2019
| | Debit | Credit |
| Cash | $274,750 | |
| Accounts Receivable | 120,000 | |
| Prepaid insurance | 11,250 | |
| Supplies | 37,500 | |
| Plant | 140,000 | |
| Accumulated Depreciation plant | | $ 14,000 |
| Accounts Payable | | 82,500 |
| Unearned Service revenue | | 73,500 |
| Common stock | | 207,500 |
| Retained Earnings | | 127,500 |
| Dividends | 7,500 | |
| Service revenue | | 198,500 |
| Salary expense | 61,500 | |
| Utilities expense | 27,000 | |
| Rent expense | 15,000 | |
| Postage | 9,000 | |
| | $703,500 | $703,500 |
Additional data are as follows:
- Supplies used during the current year amount to $25,250
- Accrued salaries on December 31, 2019, amount to $3,750
- Unearned service revenue earned during the year amounts to $26,250
- Depreciation for the current year amounts to $5,000
- Prepaid insurance expired as of December 31, 2019, amounts to $5,500
Based on the unadjusted trial balance and the additional data:
Prepare for property Incorporated:
- The adjusting entries necessary to account for the additional information
- The adjusted Trial Balance
- The following Financial Statements for the year ended December 31, 2019
- Income Statement
- Statement of Retained Earnings
- Balance Sheet
Answer & Explanation
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