$250 of the Unearned serv. Rev. account balance has now been earned b. A year-en
ID: 2461135 • Letter: #
Question
$250 of the Unearned serv. Rev. account balance has now been earned b. A year-end inventory reveals there is now 650 supplies on hand c. The office we rent has been in use all 12 months this past year and the monthly rental rate has been 525 per month for many years. d. The equipment is estimated to last 5 years. All the equipment was bought a few years ago. e. At year end we owe our employees $625 in accrued compensation; f $1, 200 of revenue has been earned but not yet recorded nor collected. g. Our current insurance policy will expire after 6 months into next year. Insurance Costs us 75 per month.Explanation / Answer
Complete the worksheet for financial statements:
Trail balance
Adjustments
Adjusted trial balance
Inc. Statement
Balance sheet
Debit
Credit
Adj. ref.
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 11,500
$ 11,500
$ 11,500
Accounts receivable
$ 16,300
f
$ 1,200
$ 17,500
$ 17,500
Supplies
$ 750
b
$ 100
$ 650
$ 650
Prepaid insurance
$ 975
g
$ 450
$ 525
$ 525
Prepaid rent
$ 7,350
c
$ 6,300
$ 1,050
$ 1,050
Equipment
$ 42,000
$ 42,000
$ 42,000
Accum. Depreciation, Equip.
$ 16,200
d
$ 5,160
$ 21,360
$ 21,360
Accounts payable
$ 8,525
$ 8,525
$ 8,525
Salary payable
e
$ 625
$ 625
$ 625
Unearned service revenue
$ 865
a
$ 250
$ 615
$ 615
Betty, Jones, Capital
$ 48,250
$ 48,250
$ 48,250
Betty, Jones, withdrawals
$ 35,201
$ 35,201
$ 35,201
Service revenue
$ 97,480
a, f
$ 1,450
$ 98,930
$ 98,930
Depreciation expense
d
$ 5,160
$ 5,160
$ 5,160
Supplies Exp
b
$ 100
$ 100
$ 100
Salary Expenses
$ 52,444
e
$ 625
$ 53,069
$ 53,069
Utilities Exp
$ 4,800
$ 4,800
$ 4,800
Insurance Exp
g
$ 450
$ 450
$ 450
Rent exp
c
$ 6,300
$ 6,300
$ 6,300
Totals
$ 171,320
$ 171,320
$ 14,085
$ 14,085
$ 178,305
$ 178,305
$ 69,879
$ 98,930
$ 108,426
$ 79,375
Profit/ Loss
$ 29,051
$ 29,051
Totals
$ 98,930
$ 98,930
$ 108,426
$ 108,426
Trail balance
Adjustments
Adjusted trial balance
Inc. Statement
Balance sheet
Debit
Credit
Adj. ref.
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 11,500
$ 11,500
$ 11,500
Accounts receivable
$ 16,300
f
$ 1,200
$ 17,500
$ 17,500
Supplies
$ 750
b
$ 100
$ 650
$ 650
Prepaid insurance
$ 975
g
$ 450
$ 525
$ 525
Prepaid rent
$ 7,350
c
$ 6,300
$ 1,050
$ 1,050
Equipment
$ 42,000
$ 42,000
$ 42,000
Accum. Depreciation, Equip.
$ 16,200
d
$ 5,160
$ 21,360
$ 21,360
Accounts payable
$ 8,525
$ 8,525
$ 8,525
Salary payable
e
$ 625
$ 625
$ 625
Unearned service revenue
$ 865
a
$ 250
$ 615
$ 615
Betty, Jones, Capital
$ 48,250
$ 48,250
$ 48,250
Betty, Jones, withdrawals
$ 35,201
$ 35,201
$ 35,201
Service revenue
$ 97,480
a, f
$ 1,450
$ 98,930
$ 98,930
Depreciation expense
d
$ 5,160
$ 5,160
$ 5,160
Supplies Exp
b
$ 100
$ 100
$ 100
Salary Expenses
$ 52,444
e
$ 625
$ 53,069
$ 53,069
Utilities Exp
$ 4,800
$ 4,800
$ 4,800
Insurance Exp
g
$ 450
$ 450
$ 450
Rent exp
c
$ 6,300
$ 6,300
$ 6,300
Totals
$ 171,320
$ 171,320
$ 14,085
$ 14,085
$ 178,305
$ 178,305
$ 69,879
$ 98,930
$ 108,426
$ 79,375
Profit/ Loss
$ 29,051
$ 29,051
Totals
$ 98,930
$ 98,930
$ 108,426
$ 108,426
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