Question

The unadjusted trial balance for Green Initiatives as December 31 is provided on the trial balance tab. Information for adjustments is os follows: o. As of December 31, employees had earned $2.000 of unpaid and unrecorded salaries. The next payday is January 4, at which time $2,500 of salaries will be paid. b. The cost of supplies still available at December 31 is $1.400. c. The notes payable requires an interest payment to be made every three months. The amount of unrecorded accrued interest at December 31 is $2.250. The next interest payment, at an amount of $2700. is due on January 15. d. Analysis of the unearned member fees account shows $2,600 remaining unearned at December 31 e. in addition to the member fees included in the revenue account balance, the company has earned another $13.300 In unrecorded fees that will be collected on January 31. The company is also expected to collect $14.000 on that same day for new fees earned in January Depreclation expense for the year is $24.200 St Owners General Journal Income Statement General Ledger Post Closing Balance Sheet

Requirement:
Prepare the required adjusting entries and closing entries for Green Initiatives.

Answer 1

Adjusting and closing entries must be made for unpaid salaries, supplies, accrued interest, unearned fees, unrecorded revenue, and depreciation expense to ensure proper financial reporting for Green Initiatives.

Step-by-step explanation:

The student is required to prepare the necessary adjusting entries and closing entries for Green Initiatives based on the additional information provided about unpaid salaries, supplies, accrued interest, unearned fees, unrecorded revenue, and depreciation expense. These entries are essential to accurately reflect the company's financial status at year-end for accurate financial reporting.

Adjusting Entries:

1. Salaries Expense: Debit $2,000, Salaries Payable: Credit $2,000 (for unpaid salaries)
2. Supplies Expense: Debit amount to adjust Supplies to $1,400, Supplies: Credit same amount (to reflect cost of supplies still available)
3. Interest Expense: Debit $2,250, Interest Payable: Credit $2,250 (for accrued interest on notes payable)
4. Unearned Fees: Debit $2,600, Fees Earned: Credit $2,600 (to recognize unearned fees that are now earned)
5. Accounts Receivable: Debit $13,300, Fees Earned: Credit $13,300 (to record unrecorded fees that were earned)
6. Depreciation Expense: Debit $24,200, Accumulated Depreciation: Credit $24,200 (to record depreciation expense for the year)

Closing Entries:

1. Close all revenue accounts to Income Summary
2. Close all expense accounts to Income Summary
3. Close Income Summary to Retained Earnings
4. Close Dividends to Retained Earnings

Carefully posting these entries to the general ledger and carrying out the closing procedure ensures that Green Initiatives' books are ready for the next fiscal period.

Answer 2

Kindly check attached picture

Step-by-step explanation:

Given:

The unadjusted trial balance for Green Initiatives as December 31 is provided on the trial balance tab. Information for adjustments is os follows: o. As of December 31, employees had earned $2.000 of unpaid and unrecorded salaries. The next payday is January 4, at which time $2,500 of salaries will be paid. b. The cost of supplies still available at December 31 is $1.400. c. The notes payable requires an interest payment to be made every three months. The amount of unrecorded accrued interest at December 31 is $2.250. The next interest payment, at an amount of $2700. is due on January 15. d. Analysis of the unearned member fees account shows $2,600 remaining unearned at December 31 e. in addition to the member fees included in the revenue account balance, the company has earned another $13.300 In unrecorded fees that will be collected on January 31. The company is also expected to collect $14.000 on that same day for new fees earned in January Depreclation expense for the year is $24.200 St Owners General Journal Income Statement General Ledger Post Closing Balance Sheet.

Kindly check attached picture for detailed explanation