P370B Learning Objective 3 Adjust the accounts Peppertree Re

P3-70B. (Learning Objective 3: Adjust the accounts) Peppertree Rentals, Inc.\'s, unadjustedLO 3 and adjusted trial balances at June 30, 2016, follow: A1 Peppertree Rentals, Inc. Trial Balance Worksheet June 30, 2016 Trial Balance Debit Credit Debit Credit Adjusted Trial Balance 2 3 Account 6,300 6,880 4,100 1,500 2,800 68,000 4,100 900 1,400 68,000 8 Supp aid insuran 10 Buildin 8,500 7,200 10,000 7,200 1,190 1,900 21,000 44,500 12 13 Wages payable 14 Unearned rental revenu 15 16 Retained earnings 17 Dividends 18 Rental revenue 19 Interest revenue 20 Depreciation expense-buildin 21 Supplies expense 22 Utilities expense 23 Wage expense 24 Property tax expense 25 Insurance expense 26 Total 27 2,200 21,000 44,500 3,300 3,300 12,500 900 13,380 1100 1,500 600 400 2,690 600 1,400 400 1,500 600 96,800 $96,800 $100,270 $100,270 Requirements 1. Make the adjusting entries that account for the differences between the two trial balances. 2. Compute Peppertree Rentals\'s total assets, total liabilities, net income, and total equity.

Solution

1. Adjusting entries

2.Total Assets

Total Liabilities

Net income

Stockholders equity

Accounts receivable	$     580
Rental revenue		$     580
Interest receivable	$     200
Interest revenue		$     200
Supplies expenses	$     600
Supplies		$     600
Insurance expenses	$ 1,400
Prepaid insurance		$ 1,400
Depreciation expense	$ 1,500
Accumulated depreciation - building		$ 1,500
Wage expenses	$ 1,190
Wages payable		$ 1,190
Unearned rental revenue ($2,200-$1,900)	$     300
Rental revenue		$     300