Open ledger accounts for each of the accounts involved, enter the balances as shown in the trial… 1 answer below »

Among the account balances shown in the trial balance of Dunwoody Mail Station, Inc., at December 31 of the current year are the following:  

Debits

Credits

Supplies on hand

$10,000  

Prepaid insurance

6,000  

Buildings

168,000  

Accumulated depreciation and buildings  

$39,000

The inventory of supplies on hand at December 31 amounts to USD 3,000.

The balance in the Prepaid Insurance account is for a two-year policy taken out June 1 of the current year.

Depreciation for the buildings is based on the cost shown in the Buildings account, less residual value estimated at USD18,000. When acquired, the lives of the buildings were estimated at 50 years each.

a. Prepare the year-end adjusting journal entries at December 31.

b. Open ledger accounts for each of the accounts involved, enter the balances as shown in the trial balance, post the adjusting journal entries, and calculate year-end balances.

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