Login Registrieren

Warning: foreach() argument must be of type array|object, bool given in /var/www/html/web/app/themes/studypress-core-theme/template-parts/header/mobile-offcanvas.php on line 20

Chapter 3: Q26QS (page 144)

The Adjusted Trial Balance columns of a 10-column work sheet for Planta Company follow. Complete the
work sheet by extending the account balances into the appropriate financial statement columns and by
entering the amount of net income for the reporting period.
7,000
27,200
42,000
32,000
15,400
6,500
38,000
13,000
8,700
\(189,800
\) 17,500
15,000
4,200
3,600
20,000
45,500
84,000
$189,800
101
106
153
154
183
201
209
233
307
318
319
401
611
622
640
677
Cash
Accounts receivable
Trucks
Accumulated depreciation—Trucks
Land
Accounts payable
Salaries payable
Unearned fees
Common stock
Retained earnings
Dividends
Plumbing fees earned
Depreciation expense—Trucks
Salaries expense
Rent expense
Miscellaneous expenses
Totals
Account Title
Unadjusted
Trial Balance
Adjusted
Trial Balance
Dr.
Adjustments
Cr. Dr. Cr.
Income
Statement
Dr. Cr.
Balance Shee
No. Dr. Cr. Dr. Cr.
1

Short Answer

Expert verified

Answer:

The net income is $17,800

Step by step solution

01

Definition of worksheet

The worksheet is a complete summary of the financial statements of the company.

02

Worksheet

Particulars	Unadjusted	Adjusted	Income Statement	Balance Sheet
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash			$7,000				$7,000
Accounts Receivable			$27,200				$27,200
Truck			$42,000				$42,000
Accumulated Depreciation-Truck				$17,500				$17,500
Land			$32,000				$32,000
Accounts Payable				$15,000				$15,000
Salaries Payable				$4,200				$4,200
Unearned Fees				$3,600				$3,600
Common Stock				$20,000				$20,000
Retained Earnings				$45,500				$45,500
Dividends			$15,400				$15,400
Plumbing Fees Earned				$84,000		$84,000
Depreciation Expense- Truck			$6,500		$6,500
Salaries Expense			$38,000		$38,000
Rent Expense			$13,000		$13,000
Miscellaneous Expense			$8,700		$8,700
Totals			$189,800	$189,800	$66,200	$84,000	$123,600	$105,800
Net Income					$17,800			$17,800
Total					$84,000	$84,000	$123,600	$123,600

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What is a company’s operating cycle?

Question: Pablo Management has five part-time employees, each of whom earns $250 per day. They are normally

paid on Fridays for work completed Monday through Friday of the same week. Assume that December 28,

2017, was a Friday, and that they were paid in full on that day. The next week, the five employees worked

only four days because New Year’s Day was an unpaid holiday.

a. Assuming that December 31, 2017, was a Monday, prepare the adjusting entry for wages expense that

would be recorded at the close of that day.

b. Assuming that January 4, 2018, was a Friday, prepare the journal entry that would be made to record

payment of the employees’ wages for that week.

In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.

A. Current assets

B. Long-term investments

C. Plant assets

D. Intangible assets

E. Current liabilities

F. Long-term liabilities

G. Equity

8. Accounts payable

Cal Consulting follows the practice that prepayments are debited to expense when paid, and unearned

revenues are credited to revenue when cash is received. Given this company’s accounting practices,

which one of the following applies to the preparation of adjusting entries at the end of its first accounting

period?

a. Unearned fees (on which cash was received in advance earlier in the period) are recorded with a debit

to Consulting Fees Earned of \(500 and a credit to Unearned Consulting Fees of \)500.

b. Unpaid salaries of \(400 are recorded with a debit to Prepaid Salaries of \)400 and a credit to Salaries

Expense of \(400.

c. Office supplies purchased for the period were \)1,000. The cost of unused office supplies of \(650 is

recorded with a debit to Supplies Expense of \)650 and a credit to Office Supplies of \(650.

d. Earned but unbilled (and unrecorded) consulting fees for the period were \)1,200, which are recorded

with a debit to Unearned Consulting Fees of \(1,200 and a credit to Consulting Fees Earned

of \)1,200.

Question: For each case below, follow the three-step process for adjusting the unearned revenue liability

account on December 31. Step 1: Determine what the current account balance equals. Step 2: Determine

what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get

from step 1 to step 2. Assume no other adjusting entries are made during the year.

a. Unearned Rent Revenue. The Krug Company collected \(6,000 rent in advance on November 1, debiting

Cash and crediting Unearned Rent Revenue. The tenant was paying 12 months’ rent in advance

and occupancy began November 1.

b. Unearned Services Revenue. The company charges \)75 per month to spray a house for insects. A

customer paid \(300 on October 1 in advance for four treatments, which was recorded with a debit to

Cash and a credit to Unearned Services Revenue. At year-end, the company has applied three treatments

for the customer.

c. Unearned Rent Revenue. On September 1, a client paid the company \)24,000 cash for six months of

rent in advance (the client leased a building and took occupancy immediately). The company recorded

the cash as Unearned Rent Revenue.

See all solutions

Recommended explanations on Business Studies Textbooks

Human Resources

Read Explanation

Business Operations

Read Explanation

Financial Performance

Read Explanation

Nature of Business

Read Explanation

Startups

Read Explanation

Business Development

Read Explanation

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free