- Education Oriental Corporation Adjusted Balances At December 31 Year 2 Listed Alphabetically Were Income Tax Payabl 1 (138.02 KiB) Viewed 35 times
Education Oriental Corporation adjusted balances at December 31, Year 2 (listed alphabetically), were: Income Tax Payable Accounts Payable 17,600 Deferred Revenue 5,000 730 Salaries and Wages Expense 5,950 Service Revenue 26,700 Accounts Receivable 21,500 Depreciation Expense 0 1 Land 54,000 Acc. Dep-Equipment 2,500 Dividends 15,000 Notes Payable(LT) 14,500 Supplies 18,400 3 Cash 85,000 Equipment 42,650 Rent Expense 6,000 Supplies Expense 4,800 Common Stock 163,000 Income Tax Expense 0 Retained Earnings ? Oriental Corporation prepared, but did not yet post, adjusting journal entries (AJES) for $1,000 of depreciation and $7,600 of income taxes incurred but not yet paid. Required: 1. Post the two AJES, determine the new adjusted balances, and prepare an adjusted trial balance listing the accounts in proper order at December 31, Year 2. Solve for the "?" in Retained Earnings. 2. Does the Retained Earnings balance determined in requirement 1 represent the balance at December 31, Year 2, or December 31, Year 1? Explain.