Explore BrainMass
Share

Explore BrainMass

    Adams Construction, Bulleye Ranges

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please review worksheets, and make any necessary corrections with explanations issues to be resolved are listed at the end of spreadsheets.
    There are two in the workbook 4-5a and 4-6a

    Thank you

    Account Title Unadjusted Trial Balance Adjustments Adjusted Trail Balance
    Dr. Cr. Dr. Cr. Dr. Cr.
    Cash 13,000
    Accounts receivable 0
    Supplies 5,500
    Equipment . 130,000
    Accumulated depreciation?
    Equipment 25,000
    Interest payable 0
    Salaries payable 0
    Unearned member fees 14,000
    Notes payable 50,000
    T. Allen, Capital 58,250
    T. Allen, Withdrawals 20,000
    Member fees earned 53,000
    Depreciation expense?
    Equipment 0
    Salaries expense 28,000
    Interest expense 3,750
    Supplies expense 0
    Totals $200,250.00 $200,250.00

    The following six-column table for Bullseye Ranges includes the unadjusted trial balance as of December 31,2005

    Required
    1. Complete the six-column table by entering adjustments that reflect the following information:
    a. As of December 31, 2005, employees had earned $900 of unpaid and unrecorded salaries. The
    next payday is January 4, at which time $1,600 of salaries will be paid.
    b. The cost of supplies still available at December 31, 2005, is $2,700.
    c. The notes payable requires an interest payment to be made every three months. The amount
    of unrecorded accrued interest at December 31, 2005, is $1,250. The next interest payment,
    at an amount of $1,500, is due on January 15, 2006.
    d. Analysis of the unearned member fees account shows $5,600 remaining unearned at December
    31, 2005.
    e. In addition to the member fees included in the revenue account balance, the company has earned
    another $9,100 in unrecorded fees that will be collected on January 31, 2006. The company
    is also expected to collect $8,000 on that same day for new fees earned in January 2006.
    f. Depreciation expense for the year is $12,500.

    2. Use the work sheet to enter the adjusting and closing entries; then journalize them.
    3. Prepare the income statement and the statement of owner's equity for the year ended June 30 and
    the classified balance sheet at June 30, 2005.

    Analysis Component
    4. Analyze the following separate errors and describe how each would affect the 10-column work
    sheet. Explain whether the error is likely to be discovered in completing the work sheet and, if
    not, the effect of the error on the financial statements.

    a. Assume that the adjustment for supplies used consisted of a credit to Supplies for $3,200 and
    a debit for $3,200 to Supplies Expense.

    b. When the adjusted trial balance in the work sheet is completed, the $17,500 Cash balance is
    incorrectly entered in the Credit column.
    166 Chapter 4 Completing the Accounting Cycle
    Check (3) Total assets, $120,250;
    current liabilities, $14,290; Net income,
    $39,300
    Check (1) Adjusted trial balance
    totals, $224,000

    Account Title
    Cash
    Supplies
    Prepaid insurance
    Equipment
    Accumulated depreciation?Equipment
    Accounts payable
    Interest payable
    Rent payable
    Wages payable
    Additional property Taxes
    Property taxes payable
    Long-term notes payable
    S. Adams, Capital
    S. Adams, Withdrawals
    Construction fees earned
    Long-term notes expense
    Depreciation expense?Equipment
    Wages expense
    Interest expense
    Insurance expense
    Rent expense
    Supplies expense
    Additional property Taxes
    Property taxes expense
    Repairs expense
    Utilities expense
    Totals
    Net Income
    Totals

    The following unadjusted trial balance is for Adams Construction Co. as of the end of its 2005 fiscal
    year. The June 30, 2004, credit balance of the owner's capital account was $52,660, and the owner
    invested $25,000 cash in the company during the 2005 fiscal year.

    Required
    1. Prepare a 10-column work sheet for fiscal year 2005, starting with the unadjusted trial balance
    and including adjustments based on these additional facts:
    a. The supplies available at the end of fiscal year 2005 had a cost of $3,200.
    b. The cost of expired insurance for the fiscal year is $3,900.
    c. Annual depreciation on equipment is $8,500.
    d. The June utilities expense of $550 is not included in the unadjusted trial balance because the
    bill arrived after the trial balance was prepared. The $550 amount owed needs to be recorded.
    e. The company's employees have earned $1,600 of accrued wages at fiscal year-end.
    f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $200.
    g. Additional property taxes of $900 have been assessed for this fiscal year but have not been
    paid or recorded in the accounts.
    h. The long-term note payable bears interest at 1% per month. The unadjusted Interest Expense
    account equals the amount paid for the first 11 months of the 2005 fiscal year. The $240 accrued
    interest for June has not yet been paid or recorded. (Note that the company is required
    to make a $5,000 payment toward the note payable during the 2006 fiscal year.)

    2. Use the work sheet to enter the adjusting and closing entries; then journalize them.
    3. Prepare the income statement and the statement of owner's equity for the year ended June 30 and
    the classified balance sheet at June 30, 2005.
    Analysis Component
    4. Analyze the following separate errors and describe how each would affect the 10-column work
    sheet. Explain whether the error is likely to be discovered in completing the work sheet and, if
    not, the effect of the error on the financial statements.
    a. Assume that the adjustment for supplies used consisted of a credit to Supplies for $3,200 and
    a debit for $3,200 to Supplies Expense.
    b. When the adjusted trial balance in the work sheet is completed, the $17,500 Cash balance is
    incorrectly entered in the Credit column.

    © BrainMass Inc. brainmass.com October 9, 2019, 8:28 pm ad1c9bdddf
    https://brainmass.com/business/balance-sheet/adams-construction-bulleye-ranges-152124

    Attachments

    Solution Summary

    The posting has solution to problem 4-6A (Bullseye ranges) and 4-5A (Adams construction) relating to competing the worksheet, making the adjusting entries and preparing the financial statements

    $2.19