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Exercise 2B

The document provides two questions about accounting exercises. Question 1 asks to prepare adjusting entries from trial balances. Question 2 provides an adjusted trial balance and asks to prepare financial statements, classify accounts, and closing entries.

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16 views2 pages

Exercise 2B

The document provides two questions about accounting exercises. Question 1 asks to prepare adjusting entries from trial balances. Question 2 provides an adjusted trial balance and asks to prepare financial statements, classify accounts, and closing entries.

Uploaded by

mytu261105
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ACC201 – Principles of Accounting

EXERCISE 2
Question 1:

The trial balances before and after adjustment for Hager Company at the end of its fiscal year are
presented below.

Instructions:
Prepare the adjusting entries that were made.
ACC201 – Principles of Accounting

Question 2:
The adjusted Trial Balance of PSO Consulting at December 31, 2020 as follows:

PSO CONSULTING
Adjusted Trial Balance
December 31, 2020
Cash $ 4,600
Accounts Receivable 5,300
Office Supplies 1,500
Prepaid Insurance 1,700
Land 13,000
Building 82,000
Accumulated Depreciation – Building $ 25,200
Accounts Payable 18,700
Interest Payable 8,500
Salaries Payable 2,400
Unearned Service Revenue 7,600
Notes Payable (Long term) 40,000
Owner’s Capital 42,500
Owner’s Drawings 27,300
Service Revenue 48,100
Insurance Expense 4,400
Salaries Expense 33,500
Supplies Expense 300
Interest Expense 8,500
Utilities Expense 2,700
Depreciation Expense – Building 8,200 .
Total $ 193,000 $ 193,000

Requirements:
1. Prepare the company’s income statement, statement of owner’s equity for the year end
December 31, 2020. Assume there were no contributions made by the owner during the year.
2. Prepare the classified balance sheet at December 31, 2020.
3. Prepare closing entries.
4. Prepare post-closing trial balance.

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