The trial balance of Johnson Travel at December 312005 follo

The trial balance of Johnson Travel at December 31,2005 follows;along with the data for the month end adjustments.

DEBT CREDIT

Cash 1300

A/R 6600

Supplies 2300

Prepaid rent 1600

Furniture 36000

Accumulated depreciation(furniture) 4800

A/P 4500

Unearned service revenue 600

Capital 26000

Withdrawals 29000

Service Revenue 106000

Deprecation expense 2300

Salary Expense 39900

Rent expense 20000

Supplies expense 2900

TOTAL 141900 141900

Questions: What adjusting entry will Johson make on this transaction ?

a) Depreciation on furniture for the month.The estimated useful life of the furniture is 2 years.

b)On December 1,the bussiness moved into a new office and paid the first 4 months rent as advance.Prepaid rent expense during the month.

c)Service Revenue of 300 dollars were earned during the month from the service performed for clients who had paid in advance.

d)The salary expense is 245 dollars per day-and the business pays employees every Friday(weekly payroll is from Monday to Friday).This year December 31 falls on a Monday.

1- What is Total Expense ?

2-Total Liabilities ?

3-The A/P in the Adjusted Trial Balance is ?

4-The total debit or credit amount in the Adjusted Trial Balance ?

5-Which of the following is the closing entry for withdrawals on Dec 31 ?

6-Which of the following is closing entry for revenue on Dec 31 ?

7- The next capital balance in the post closing trial balance is ?

8-How much is the Debit/Credit amount in the Post-closing trial balance ?

9-How much is the revenue balance in the post closing trial balance ?

10-The current assets in the classified balance sheet is ?

11-The total assets is ?

Solution

As per policy, only 4 parts of a question are allowed to answer, so answering Adjusting entries & 1-4 :

Adjusting Journal Entries :

1) Total expenses :

2: Total Liabilities :

3-The A/P in the Adjusted Trial Balance is $4500.

4-The total debit or credit amount in the Adjusted Trial Balance is as follows: