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The Trial Balance and Information for Year-End Adjustments for Vilardi

Question 66

Essay

The trial balance and information for year-end adjustments for Vilardi Company are as follows:
Vilardi CompanyTrial BalanceDecember 31, 20– Account Title  Debit  Credit  Cash 15,700 Accounts Receivable 9,400 Supplies 6,000 Prepaid Insurance 1,500 Equipment 50,000 Accumulated Depreciation-Equipment 10,000 Accounts Payable 5,400 Wages Payable  Vilardi, Capital 29,460 Vilardi, Drawing 1,500 Service Fees 63,000 Wages Expense 15,100 Rent Expense 7,800 Supplies Expense Utilities Expense860 Insurance Expense Depreciation Expense-Equipment 107,860107,860\begin{array}{c}\text {Vilardi Company}\\\text {Trial Balance}\\\text {December 31, 20--}\\\\\begin{array}{lr} \underline{\text { Account Title }}& \underline{\text { Debit }}& \underline{ \text { Credit }}\\\text { Cash } & 15,700 \\\text { Accounts Receivable } & 9,400 \\\text { Supplies } & 6,000 \\\text { Prepaid Insurance } & 1,500 \\\text { Equipment } & 50,000\\\text { Accumulated Depreciation-Equipment } && 10,000 \\\text { Accounts Payable } && 5,400 \\\text { Wages Payable } & \\\text { Vilardi, Capital } & &29,460\\\text { Vilardi, Drawing } & 1,500 & \\\text { Service Fees } & & 63,000 \\\text { Wages Expense } & 15,100 & \\\text { Rent Expense } & 7,800 &\\\text { Supplies Expense}\\\text { Utilities Expense}&860\\\text { Insurance Expense}\\\text { Depreciation Expense-Equipment }&\underline{\quad\quad}&\underline{\quad\quad}\\&107,860&107,860\end{array}\end{array}
a.
Supplies on hand at year-end amounted to $420.
b.
The equipment costing $50,000 has an expected life of five years and no salvage value.Vilardi uses straight-line depreciation.
c.
A premium of $1,500 for a one-year insurance policy was paid on November 1.
d.
Wages earned by employees but not paid by year-end amounted to $900.
Prepare the necessary year-end adjustments on a 10-column work sheet (identify each adjustment by letter),and complete the work sheet.

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