Videos Delivered, Inc._Adjustments and Financial statements

August 14th, 2017

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Demonstration Problem #1
Videos Delivered, Inc. is in the business of renting videos. The trial balance for videos Delivered Inc. at December 31, 2004, and the data needed for the year-end adjustments are as follows:
Trial Balance
December 31, 2004
Cash	19415
Accounts receivable	90
Prepaid rent	1200
Supplies	400
Rental Tape library	24000
Accumulated Depreciation – tape liabrary		12000
Furniture	9500
Accumulated Depreciation – Furniture		3800
Accounts Payable		1450
Salary Payable
Unearned Tape rental revenue		1300
Common Stock		15000
Retained Earnings		7150
Dividends	3000
Tape Rental revenue		43365
Salary Expense	14400
Rent Expense	6600
Utilities expense	2800
Depreciaton Expense – tape Liabrary
Depreciaton Expense – Furniture
Advertising Expense	2660
Supplies Expense
Total	84065	84065

Adjustment Data
a. Depreciation for the year
	– On the rental tape liabrary $6,000
	– On the Furniture $1,900
b. Accrued salary expense at December 31, $120
c. Prepaid rent expired $600
d. Unearned tape rental revenues which remain unearned as of December 31, $625
e. Supplies on the hand at December 31, $230
f. Accrued advertising expense at December 31, $115. (Credit Accounts Payable)

Required:
Make Adjusting entries
Make Adjusting Trail Balance
Make Income Statement, Retained earning statement and Balance Sheet

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