The Trial Balances of Orton Company Follow with the Accounts

question 175

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. $\begin{array}{lrrr}&&\text { Trial Balances }\\\hline& \text { Unadiusted } & \text { Adjusted } & \text { Post-Closing }\\\hline\text { Accounts Payable } & \$ 10,000 & \$ 10,000 & \$ 10,000 \\\text { Accounts Receivable } & 2,200 & 2,200 & 2,200 \\\text { Accumulated Depreciation-Equipment } & 13,000 & 17,000 & 17,000 \\\text { Insurance Expense } & 0 & 16,300 & 0 \\\text { Cash } & 37,000 & 37,000 & 37,000\\\text { Depreciation Expense } & 0 & 4,000 & 0 \\\text { Equipment } & 75,000 & 75,000 & 75,000 \\\text { Owner's Capital } & 82,200 & 82,200 & 93,400 \\\text { Owner's Drawings } & 11,000 & 11,000 & 0 \\\text { Prepaid insurance } & 17,800 & 1,500 & 1,500 \\\text { Prepaid Rent } & 15,000 & 11,000 & 11,000\\\text { Rent Expense } & 0 & 4,000 & 0 \\\text { Service Revenue } & 96,000 & 96,000 & 0 \\\text { Supplies } & 3,200 & 700 & 700 \\\text { Supplies Expense } & 2,000 & 4,500 & 0 \\\text { Salaries and Wages Expense } & 38,000 & 45,000 & 0 \\\text { Salaries and Wages Payable } & 0 & 7,000 & 7,000\end{array}$

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Definitions:

Emergency Circuit

A dedicated electrical circuit designed to maintain operation of critical systems in the event of a failure or emergency situation.

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Federal Motor Vehicle Safety Standard 121, which specifies requirements for air brake systems in heavy trucks to ensure safety through braking performance.

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