Comprehensive Problem Part B Requirement1 Record the followi

Comprehensive Problem (Part B) Requirement1 Record the following month end adjusting entries for Gordon Construction, Inc. at June 30. 20xx. Post the transactions to the T-accounts. Month end adjusting entries at June 30, 20xx: 1) Accrued construction revenue at June 30, $7,100 2) Had $700 of supplies on hand at the end of June. 3) Accrued salary expense at June 30 for Monday, Tuesday, and Wednesday. The ten-day weekly payroll is $6.100 and will be paid on the following Friday. 4) The equipment has a salvage value of $1,200, with an expected life of 4-years and is depreciated based on the straight-line method. Book depreciation for the month of June. 5) Accrue the interest for the note receivable. 6) The truck has a salvage value of $4,000, with an expected life of 5-years and is depreciated based on the straight-line method. Book depreciation for the month of June. 7) Amortize one month of insurance. 8 Amortize June\'s rent prepaid in May Requirement 2 Prepare adjusted trial balance for Gordon Construction at June 30, 20xx. Requirement 3 Prepare the following financial statements: Income Statement, Statement of Retained Earnings and Balance Sheet. Requirement 4 Prepare the month end closing entries at June 30, 20XX. Post the transaction to the T-accounts. Be sure to use the Income Summary T-account.

Solution

Journal Entry Date Particulars Dr. Amt. Cr. Amt. 2-Jun Cash      55,000.00    Common stock      55,000.00 (To record issue of Common stock) 3-Jun Supplies        3,000.00 Equipment      25,200.00    Accounts Payable      28,200.00 (To record purhase of Supplies & Equipment) 4-Jun Cash        6,300.00 Service Revenue        6,300.00 (To record the service revenue recd) 5-Jun Prepaid Insurance        2,400.00    Cash        2,400.00 (To record the insurance paid) 7-Jun Truck      37,000.00    Cash      37,000.00 (To record the truck purchased) 11-Jun Wages Payable        1,590.00 Salaries & Wages Expense        3,710.00    Cash        5,300.00 (To record the wages paid) 11-Jun Accounts Receivable        5,400.00 Service Revenue        5,400.00 (To record the service revenue) 12-Jun Notes receivable        4,000.00    Accounts Receivable        4,000.00 (To record a note accepted against due) 17-Jun Telephone Expense            380.00    Cash            380.00 (To record the telephone expense paid) 18-Jun Cash        2,700.00    Accounts Receivables        2,700.00 (To record the cash received from customer) 22-Jun Water & Electricity Expense            400.00    Cash            400.00 (To record the water & electricity bill paid) 23-Jun Accounts Payable      25,200.00    Cash      25,200.00 (To record the amount paid for equipment) 25-Jun Salaries & Wages Expense        4,800.00    Cash        4,800.00 (to Record the salaries paid) 29-Jun Cash        5,000.00    Service Revenue        5,000.00 (To record the service revenue received) 29-Jun Prepaid Rent        2,500.00    Cash        2,500.00 (To record the rent paid in adavnce) 30-Jun Dividends        3,000.00    Cash        3,000.00 (To record the dividend paid) Cash Accounts Receivable Prepaid Rent Beg. Bal.        2,500.00        2,400.00 5-Jun Beg. Bal.        6,700.00      4,000.00 12-Jun Beg. Bal.      2,500.00 2-Jun      55,000.00      37,000.00 7-Jun 11-Jun        5,400.00      2,700.00 18-Jun 29-Jun      2,500.00 4-Jun        6,300.00        5,300.00 11-Jun 18-Jun        2,700.00            380.00 17-Jun 29-Jun        5,000.00            400.00 22-Jun      25,200.00 23-Jun        4,800.00 25-Jun        2,500.00 29-Jun        3,000.00 30-Jun End. Bal.        9,480.00 End. Bal.        5,400.00 End. Bal.      5,000.00 Supplies Prepaid Insurance Equipment Beg. Bal.                     -   Beg. Bal.                     -   Beg. Bal.                   -   3-Jun        3,000.00 5-Jun        2,400.00 3-Jun    25,200.00 End. Bal.        3,000.00 End. Bal.        2,400.00 End. Bal.    25,200.00 Truck Notes Receivable Dividends Beg. Bal.                     -   Beg. Bal.                     -   Beg. Bal.                   -   7-Jun      37,000.00 12-Jun        4,000.00 30-Jun      3,000.00 End. Bal.      37,000.00 End. Bal.        4,000.00 End. Bal.      3,000.00 Accounts Payable Wages Payable Common stock Beg. Bal.                     -   Beg. Bal.      1,590.00 Beg. Bal.        5,000.00 23-Jun      25,200.00      28,200.00 3-Jun 11-Jun        1,590.00      55,000.00 2-Jun End. Bal.        3,000.00 End. Bal.                   -   End. Bal.      60,000.00 Retained Earnings Service Revenue Salaries & Wages Expense Beg. Bal.        5,110.00      6,300.00 4-Jun 11-Jun      3,710.00      5,400.00 11-Jun 25-Jun      4,800.00      5,000.00 29-Jun End. Bal.        5,110.00 End. Bal.    16,700.00 End. Bal.      8,510.00 Telephone Expense Water & Electricity Expense 17-Jun            380.00 22-Jun            400.00 End. Bal.            380.00 End. Bal.            400.00 GORDON CONSTRUCTION INC Trial Balance For the Month Ended Jun 30, 20XX Accounts Title Debits Credits Cash        9,480.00 Accounts Receivable        5,400.00 Prepaid Rent        5,000.00 Supplies        3,000.00 Prepaid Insurance        2,400.00 Equipment      25,200.00 Truck      37,000.00 Notes Receivable        4,000.00 Accounts Payable        3,000.00 Wages Payable                     -   Common stock      60,000.00 Retained Earnings        5,110.00 Dividends        3,000.00 Service Revenue      16,700.00 Salaries & Wages Expense        8,510.00 Telephone Expense            380.00 Water & Electricity Expense            400.00 Total      94,290.00      94,290.00