The Wheel Place Inc. began operations on March 1 of the current year to provide automotive wheel alignment and balancing services. On March 31 the unadjusted balances of the firm's accounts are as...


The Wheel Place Inc. began operations on March 1 of the current year to provide automotive wheel alignment and balancing services. On March 31 the unadjusted balances of the firm's accounts are as follows:



​The Wheel Place Inc.


​Trial Balance


​March 31, 2010



​​    DR​    CR



​Cash​$  2,900


​Accounts Receivable​    4,350


​Supplies​           0


​Prepaid Rent​    4,000​


​Equipment​  25,100


​Accumulated Depreciation – Equipment​$         0


​Accounts Payable​   2,400


​Unearned Service Revenue​       700


​Capital Stock​  29,000


​Service Revenue​  10,550


​Depreciation Expense – Equipment​          0


​Rent Expense​          0


​Supplies Expense​   2,600


​Wages Expense​  3,700​_______


​          $ 41,850​ ​$ 41,850



​The following information is also available:



​1)​The balance in Prepaid Rent was the amount paid on March 1 to cover the first four months rent.



​2)​Supplies on hand on March 31 amount to $1,200.



​3)​The equipment has an estimated life of seven years with a salvage value of $2,000.



4)​The company has 3 employees who in total are paid 3,750 for the week. March 31, 2010 falls on a Wednesday.



​5)​Utility services used during March were estimated at $480. A bill is expected early in April.



​6)​The balance in Unearned Service Revenue was the amount received on March 15 from a new car dealer to cover alignment and balancing services on all new cars sold by the​dealer in March and April. Wheel Place agreed to provide the service at a fixed fee of $350 each month.




​REQUIRED:



a) Prepare the necessary adjusting entries at March 31, 2010 for the addition information given



b)​Prepare the journal entry on April 2, 2010 to record the payment of the wages to the ​employees listed in information item #4 above.  (assume the company does not use ​reversing entries)

Jun 10, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here