The Trial Balances of Orton Company Follow with the Accounts

question 132

Essay

The trial balances of Orton Company follow with the accounts arranged in alphabetic order. Analyze the data and prepare (a) the adjusting entries and (b) the closing entries made by Orton Company. $\begin{array}{lrrr}&&\text { Trial Balances }\\\hline& \text { Unadjusted } & \text { Adjusted } & \text { Post-Closing } \\\hline\text { Accounts Payable } & \$ 10,000 & \$ 10,000 & \$ 10,000 \\\text { Accounts Receivable } & 2,200 & 3,200 & 3,200 \\\text { Accumulated Depreciation-Equipment } & 13,000 & 17,000 & 17,000 \\\text { Advertising Expense } & 0 & 16,300 & 0 \\\text { Cash } & 60,000 & 60,000 & 60,000 \\\text { Depreciation Expense } & 0 & 4,000 & 0 \\\text { Equipment } & 75,000 & 75,000 & 75,000 \\\text { Owner's Capital } & 82,200 & 82,200 & 102,400 \\\text { Owner's Drawings } & 11,000 & 11,000 & 0 \\\text { Prepaid Advertising } & 17,800 & 1,500 & 1,500 \\\text { Prepaid Rent } & 15,000 & 11,000 & 11,000 \\\text { Rent Expense } & 0 & 4,000 & 0 \\\text { Service Revenue } & 96,000 & 105,000 & 0 \\\text { Supplies } & 3,200 & 700 & 700 \\\text { Supplies Expense } & 2,000 & 4,500 & 0 \\\text { Unearned Service Revenue } & 23,000 & 15,000 & 15,000 \\\text { Salaries and Wages Expense } & 38,000 & 45,000 & 0 \\\text { Salaries and Wages Payable } & 0 & 7,000 & 7,000\end{array}$

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Definitions:

Water Molecule

A molecule composed of two hydrogen atoms and one oxygen atom, essential for life.

Oxygen Atom

A chemical element with symbol O, essential for cellular respiration in living organisms.

High Heat

Refers to temperatures that are significantly above the average for a specific environment or process.

Vaporization

The conversion of a substance from a liquid or solid phase into a gas phase.