08 Jun stion Financial Statement Homework #1
Question
Financial Statement Homework #1
Name___________________
Please circle section time: 8:00, 9:30, 12:30, 2:00, 3:30
Smith Contractors, Inc.
December 31, 2014
Unadjusted Trial balance
Cash
Accounts Receivable
Supplies on Hand
Prepaid Insurance
Inventory
Vehicle
Equipment
Accumulated Depreciation
Accounts Payable
Unearned Revenue
Wages Payable
Long-Term Notes Payable
Common Stock
Retained Earnings (1/1/2014)
Dividends
Sales Revenue
COGS
Delivery Expense
Depreciation Expense
Rent Expense
Insurance Expense
Wages Expense
Supplies Expense
Interest Expense
Income Tax Expense
Total
58,400
22,000
5,500
36,000
10,000
15,000
75,000
52,000
8,000
14,900
2,000
45,000
46,000
128,000
5,000
416,000
100,000
45,000
16,000
54,000
20,000
195,000
16,000
4,000
35,000
711,900
711,900
Page 1 of 7
Part 1:
Prepare adjusting journal entries using the unadjusted trial
balance on the previous page and the information provided below. Use only the
account names provided on the previous page (do not create any new account
names).
1. The prepaid insurance balance reflects a12-month insurance policy which
started on Sept. 1, 2014, and no adjustments were made from Sept. 1 – Dec.
31, 2014. Write the adjusting journal entry for Dec. 31, 2014.
2. Additional depreciation expense of $15,000 needs to be recorded for the year
ended 2014.
3. Additional wages due to employees of $5,000 ($5,000 more than the recorded
$2,000 balance) needs to be recorded at year end. These wages will be paid
to employees on January 9, 2015. (next month)
4. The company has completed $6,900 of the $14,900 in unearned revenue as
of Dec. 31st.
5. In Dec. the company provided services worth $2,000 to clients that were not
yet billed or recorded by Dec. 31. Record the additional revenue.
6. On Dec 31st the company completed a physical count of their supplies and
determined that only $3,500 of supplies are still on hand.
Page 2 of 7
Part 2: Post the adjusting journal entries to t-accounts:
(Hints on getting started: Above each T-account, write the account name of each account affected by
an adjusting journal entry (you may not need to use all of the T-accounts). Write in the unadjusted
balance for each of these accounts (from page 1)…the unadjusted balance might be a debit, a credit,
or zero balance. Now you are ready to post your adjusting journal entries from page 2 onto the
corresponding T-accounts and then calculate adjusted balances.)
Page 3 of 7
Part 3: Prepare the Adjusted Trial Balance (i.e., after the previous 6 journal
entries are posted)
Smith Contractors, Inc.
December 31, 2014
Adjusted Trial balance
Cash
Accounts Receivable
Supplies on Hand
Prepaid Insurance
Inventory
Vehicle
Equipment
Accumulated Depreciation
Accounts Payable
Unearned Revenue
Wages Payable
Long-Term Notes Payable
Common Stock
Retained Earnings (1/1/2014)
Dividends
Sales Revenue
COGS
Delivery Expense
Depreciation Expense
Rent Expense
Insurance Expense
Wages Expense
Supplies Expense
Interest Expense
Income Tax Expense
Total
Page 4 of 7
Part 4: Prepare the Income Statement, the Statement of Retained Earnings, and a Classified
Balance Sheet (in this order). Include the appropriate titles, subtotals and totals.
(You may not use all the lines provided in the statements depending on how you label titles)
________________________
________________________
_______________
______________________________
______________________________
______________________________
Page 5 of 7
_____________________
___________________________
_______________
Page 6 of 7
Part 5: Answer the following questions using the above completed
financial statements:
What is Net Income or Net Loss?
What is Total Current Assets?
What is Total Current Liabilities?
What is Total Assets?
What is Total Stockholders Equity?
Page 7 of 7
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