Ex. 201
The financial statement columns of the worksheet for Dr. Gumbo’s Catering Company as of December 31, 2011are as follows:
DR. GUMBO’S CATERING COMPANY
Worksheet
For the Year Ended December 31, 2011
Income Statement Balance Sheet
Accounts Debit Credit Debit Credit
Cash20,000
Accounts Receivable6,000
Supplies4,500
Prepaid Insurance7,000
Equipment50,000
Accumulated Depreciation4,800
Copyrights7,500
Accounts Payable23,500
Bonds Payable (due 2015)18,000
Common Stock20,000
Retained Earnings26,000
Dividends4,200
Service Revenue25,400
Salaries Expense5,200
Depreciation Expense4,800
Insurance Expense5,000
Income Tax Expense 3,500
Totals18,50025,40099,20092,300
Net Income 6,900 6,900
25,40025,400 99,200 99,200
Instructions
Prepare a classified balance sheet for Dr. Gumbo’s Catering Company.
aEx. 202
North Company prepared the following adjusting entries at year end on December 31, 2011:
(a)Interest Expense.......................................200
Interest Payable............................................200
(b)Unearned Revenue......................................1,500
Service Revenue............................................1,500
(c)Insurance Expense......................................1,200
Prepaid Insurance...........................................1,200
(d)Interest Receivable......................................100
Interest Revenue............................................100
(e)Supplies Expense.......................................250
Supplies...............................................250
(f)Wages Expense........................................3,000
Wages Payable.............................................3,000
Ex. 202(Cont.)
In an effort to minimize errors in recording transactions, North Company utilizes reversing entries.
Instructions
Prepare reversing entries on January 1, 2012, for the adjusting entries given where appropriate.