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. $\begin{array}{lrrr}&&\text { Trial Balances }\\\hline& \text { Unadjusted } & \text { Adjusted } & \text { Post-Closing } \\\hline\text { Accounts Payable } & \$ 10,000 & \$ 10,000 & \$ 10,000 \\\text { Accounts Receivable } & 2,200 & 3,200 & 3,200 \\\text { Accumulated Depreciation-Equipment } & 13,000 & 17,000 & 17,000 \\\text { Advertising Expense } & 0 & 16,300 & 0 \\\text { Cash } & 60,000 & 60,000 & 60,000 \\\text { Depreciation Expense } & 0 & 4,000 & 0 \\\text { Equipment } & 75,000 & 75,000 & 75,000 \\\text { Owner's Capital } & 82,200 & 82,200 & 102,400 \\\text { Owner's Drawings } & 11,000 & 11,000 & 0 \\\text { Prepaid Advertising } & 17,800 & 1,500 & 1,500 \\\text { Prepaid Rent } & 15,000 & 11,000 & 11,000 \\\text { Rent Expense } & 0 & 4,000 & 0 \\\text { Service Revenue } & 96,000 & 105,000 & 0 \\\text { Supplies } & 3,200 & 700 & 700 \\\text { Supplies Expense } & 2,000 & 4,500 & 0 \\\text { Unearned Service Revenue } & 23,000 & 15,000 & 15,000 \\\text { Salaries and Wages Expense } & 38,000 & 45,000 & 0 \\\text { Salaries and Wages Payable } & 0 & 7,000 & 7,000\end{array}$

---

Definitions:

Brutality

Savage physical violence; great cruelty or a brutal act that demonstrates a lack of humanity or consideration.

Economic Enrichment

An increase in wealth or resources in an economy, leading to better quality of life and economic development.

Modernization Theory

A theory in sociology that argues that societies progress linearly from traditional to modern states, emphasizing the role of technology, economic development, and rational social institutions.

Economic Underdevelopment

A condition characterized by low industrialization, poor infrastructure, and a low standard of living within a country or region.