Precision Plumbing Company, Inc. Post-Closing Trial Balance December 31, 20XX De
ID: 2459291 • Letter: P
Question
Precision Plumbing Company, Inc.
Post-Closing Trial Balance
December 31, 20XX
Debit
Credit
Cash
$12,300
Accounts receivable
$10,700
Supplies
$1,800
Equipment
$25,800
Accumulated depreciation—Equipment
$12,300
Accounts payable
$3,300
Unearned service revenue
$4,600
Salary payable
$700
Note payable
$15,000
Schaubach, Capital
$9,000
Schaubach, Drawing
$36,000
Service revenue
$66,000
Depreciation expense
$5,500
Salary expense
$9,600
Utilities expense
$4,100
Insurance expense
$3,700
Supplies expense
$1,400
$110,900
$110,900
5. Precision Plumbing signed a 10-year Note payable on January 1, 20XX for $500,000. The note requires annual principal payments each December 31 of $50,000 and interest at 4%. Complete the journal entry for the payment at the end of the first year.
Precision Plumbing Company, Inc.
Post-Closing Trial Balance
December 31, 20XX
Debit
Credit
Cash
$12,300
Accounts receivable
$10,700
Supplies
$1,800
Equipment
$25,800
Accumulated depreciation—Equipment
$12,300
Accounts payable
$3,300
Unearned service revenue
$4,600
Salary payable
$700
Note payable
$15,000
Schaubach, Capital
$9,000
Schaubach, Drawing
$36,000
Service revenue
$66,000
Depreciation expense
$5,500
Salary expense
$9,600
Utilities expense
$4,100
Insurance expense
$3,700
Supplies expense
$1,400
$110,900
$110,900
Explanation / Answer
Answer:
Notes payable Dr. 50000
Interest expense (500000*.04) Dr. 20000
To cash .........................................................70000
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