Suppose a company prepares the following unadjusted trial balance as of December 31.
|
Account Titles
|
Debit
|
|
Credit
|
|
Cash
|
$19,600
|
|
|
|
Accounts receivable
|
7,000
|
|
|
|
Supplies
|
1,300
|
|
|
|
Prepaid insurance
|
900
|
|
|
|
Equipment
|
27,000
|
|
|
|
Accumulated depreciation
|
|
|
$12,000
|
|
Other assets
|
5,100
|
|
|
|
Accounts payable
|
|
|
2,500
|
|
Wages payable
|
|
|
|
|
Income taxes payable
|
|
|
|
|
Note payable
|
|
5,000
|
|
Contributed Capital (3,000 shares outstanding all year)
|
|
|
16,000
|
|
Retained earnings
|
|
|
10,300
|
|
Service revenue
|
|
|
48,000
|
|
Other expenses
|
32,900
|
|
|
|
Income tax expenses
|
|
|
|
|
Totals
|
$93,800
|
|
$93,800
|
The following data has not been recorded at December 31.
(a) Depreciation expense for the year, $3,000.
(b) Wages earned by employees but not yet paid amount to $2,100.
(c) The supplies count on December 31 reflected $800 remaining supplies on hand to be used the following year.
(d) Insurance expired during the year, $450.
(e) Income tax expense was $3,150.
Record the adjusting entries. Prepare an income statement with earnings per share assuming there are 3,000 shares. Prepare a classified balance sheet for the year. For the income statement and balance sheet, include the effects of the preceding five data items.