The following account balances pertain to the Henryville Manufacturing Co.at December 31,2013 (before adjusting entries).

Additional information:
(a)Prepaid insurance in the trial balance represents an advance payment for 5 months of insurance made on November 1,2013.
(b)In July,the accountant debited accounts payable for a $10,000 fine for a pollution violation; "Environmental Expense" should have been debited.
(c)Rent expense in the trial balance represents an advance payment for 6 months rent paid on October 1,2013.The Company begins occupying the property on that date.
(d)Unpaid and unrecorded wages earned by employees at December 31,2013,were
$60,000.
(e)The income tax liability for the year is $100,000,payable April 15,2014.
Required:
(1)Prepare adjusting entries to Henryville Co.'s accounts at December 31,2013.Each entry should be made in general journal format.Identify each entry by using the letter of the paragraph containing the additional information for the entry.
(2)Prepare the current year income statement
.
(3)Prepare the current year retained earnings statement.
(4)Prepare the current year balance sheet.
(5)Prepare the closing entries.

Question

The following account balances pertain to the Henryville Manufacturing Co.at December 31,2013 (before adjusting entries).
  
Additional information:
(a)Prepaid insurance in the trial balance represents an advance payment for 5 months of insurance made on November 1,2013.
(b)In July,the accountant debited accounts payable for a $10,000 fine for a pollution violation; "Environmental Expense" should have been debited.
(c)Rent expense in the trial balance represents an advance payment for 6 months rent paid on October 1,2013.The Company begins occupying the property on that date.
(d)Unpaid and unrecorded wages earned by employees at December 31,2013,were
$60,000.
(e)The income tax liability for the year is $100,000,payable April 15,2014.
Required:
(1)Prepare adjusting entries to Henryville Co.'s accounts at December 31,2013.Each entry should be made in general journal format.Identify each entry by using the letter of the paragraph containing the additional information for the entry.
(2)Prepare the current year income statement
.
(3)Prepare the current year retained earnings statement.
(4)Prepare the current year balance sheet.
(5)Prepare the closing entries.

Quizplus · Accepted Answer

The Answer of The following account balances pertain to the Henryville Manufacturing Co.at December 31,2013 (before adjusting entries).
  
Additional information:
(a)Prepaid insurance in the trial balance represents an advance payment for 5 months of insurance made on November 1,2013.
(b)In July,the accountant debited accounts payable for a $10,000 fine for a pollution violation; "Environmental Expense" should have been debited.
(c)Rent expense in the trial balance represents an advance payment for 6 months rent paid on October 1,2013.The Company begins occupying the property on that date.
(d)Unpaid and unrecorded wages earned by employees at December 31,2013,were
$60,000.
(e)The income tax liability for the year is $100,000,payable April 15,2014.
Required:
(1)Prepare adjusting entries to Henryville Co.'s accounts at December 31,2013.Each entry should be made in general journal format.Identify each entry by using the letter of the paragraph containing the additional information for the entry.
(2)Prepare the current year income statement
.
(3)Prepare the current year retained earnings statement.
(4)Prepare the current year balance sheet.
(5)Prepare the closing entries.

The Following Account Balances Pertain to the Henryville Manufacturing Co