Let's break down the step-by-step solution for the given question:
### Step 1: Late Purchase Invoices
We need to calculate the total of the late purchase invoices that pertain to December:
| Item | Amount ([tex]$) |
|-------------------|------------|
| Supplies Expense | 150.00 |
| General Expense | 75.00 |
| Utilities Expense | 564.00 |
Total = Supplies Expense + General Expense + Utilities Expense
\[
\text{Total Invoices} = 150.00 + 75.00 + 564.00 = 789.00
\]
Thus, the total of the late purchase invoices is \$[/tex]789.00.
### Step 2: Supplies on Hand
On December 31, the supplies on hand were \[tex]$500.00, while the Trial Balance showed a Debit balance of \$[/tex]1380.00.
### Step 3: Unexpired Insurance
The unexpired insurance at December 31 is for 3 months at \[tex]$350.00 per month, and the Trial Balance shows a Debit balance of \$[/tex]18,500.00.
First, calculate the unexpired insurance:
[tex]\[
\text{Unexpired Insurance} = \text{Monthly Insurance} \times \text{Unexpired Months} = 350.00 \times 3 = 1,050.00
\][/tex]
So, the unexpired insurance is \[tex]$1,050.00.
### Step 4: Repair Jobs Not Billed/Invoiced
Repair jobs that were completed but not billed/invoiced to customers on December 31 amounted to \$[/tex]2,750.00.
Now, let's move to the given Trial Balance:
### Trial Balance as at December 31, 2020
| Accounts | Debit ([tex]$) | Credit ($[/tex]) |
|---------------------|--------------|-----------------|
| Bank | 723.50 | |
| Accounts Receivable | 23,356.05 | |
| Supplies | 1,420.00 | |
| Land | 54,000.00 | |
| Pre-Paid Insurance | 24,000.00 | |
| Equipment | 25,750.00 | |
| Automobiles | 35,256.20 | |
| Building | 102,500.00 | |
| Accounts Payable | | 5,365.00 |
| Bank Loan | | 30,000.00 |
| Tom Michaud, Capital| | 313,544.00 |
| Tom Michaud, Drawings| 48,000.00 | |
| Revenue - Bodywork | | 135,315.00 |
| Revenue - Repairs | | 66,214.00 |
| Advertising Expense | 850.00 | |
| Automobile Expense | 4,569.33 | |
| Bank Charge Expense | 3,485.00 | |
| General Expense | 1,258.90 | |
| Utilities Expense | 2,585.00 | |
| Materials Expense | 36,750.25 | |
| Telephone Expense | 1,585.00 | |
| Wages Expense | 184,350.24 | |
| Total | 550,439.47 | 550,439.00 |
Finalizing the closing entries would require adjusting for the late purchase invoices, supplies on hand, unexpired insurance, and the repair jobs not billed.
In summary:
1. Total late purchase invoices: \[tex]$789.00
2. Supplies on hand: \$[/tex]500.00 (Trial Balance showed \[tex]$1380.00)
3. Unexpired insurance: \$[/tex]1,050.00 (Trial Balance showed \[tex]$18,500.00)
4. Completed repair jobs not billed: \$[/tex]2,750.00
These detailed steps summarize the necessary adjustments and provide the basis for the closing entries for Collision Bodywork and Auto Repairs as of December 31, 2020.
