Panda Inn, Inc.
Panda Inn, Inc. is in a crunch as financial statement presentation is only one week away. Before FS presentation can take place, Panda must complete its Adjusted Trial Balance. To do this, Unadjusted TB information is needed from which adjustments may be added or subtracted. Completing the adjusted trial balance is a matter of adding or subtracting rows across after all adjustments are made.
Instructions: Please compute and input Panda's adjusting journal entries into the Adjustments columns, noting Dr. & Cr. alignment. Then complete its Adjusted TB as noted above. Lastly, compute Totals Row for all columns. Month-end AJEs must be computed and inputted based on Dr's & Cr's and the following information:
(a) Panda counted supplies at month-end and determined $760 worth were remaining.
(b) Prepaid Insurance balance decreased to $2,200.
(c) Unearned Revenue decreased to $240.
(d) Revenue earned but unrecorded amounts to $500 based on services provided.
(e) Payroll information reveals that Panda owes its employees $250.
(f) Book value on fixed assets fell from $1,800 to $1,750.
|
Unadjusted Trial Balance |
Adjustments |
Adjusted Trial Balance |
| Account Title |
Debit |
Credit |
Debit |
Credit |
Debit |
Credit |
| Cash |
2,065 |
|
|
|
|
|
| Accounts Receivable |
2,220 |
|
|
|
|
|
| Supplies |
2,000 |
|
|
|
|
|
| Prepaid Insurance |
2.4 |
|
|
|
|
|
| Land |
20,000 |
|
|
|
|
|
| Office Equipment |
1,800 |
|
|
|
|
|
| Accumulated Depr. |
|
|
|
|
|
|
| Accounts Payable |
|
900 |
|
|
|
|
| Wages Payable |
|
360 |
|
|
|
|
| Unearned Rent |
|
25,000 |
|
|
|
|
| Common Stock |
4000 |
|
|
|
|
|
| Dividends |
|
16340 |
|
|
|
|
| Fees Earned |
|
|
|
|
|
|
| Rent Revenue |
|
|
|
|
|
|
| Wages Expense |
4275 |
|
|
|
|
|
| Rent Expense |
1600 |
|
|
|
|
|
| Depreciation Expense |
|
|
|
|
|
|
| Utilities Expense |
985 |
|
|
|
|
|
| Supplies Expense |
800 |
|
|
|
|
|
| Insurance Expense |
|
|
|
|
|
|
| Miscellaneous Exp. |
455 |
|
|
|
|
|
| Totals Row |
42600 |
42600 |
|
|
|
|
Please do not write below this line. For use by Instructor Mares Bonus points given