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Debits $ 70,270 121,700 1,480 144,900 9,150 52,700 290,400 Credits Cash Accounts

ID: 2530401 • Letter: D

Question

Debits $ 70,270 121,700 1,480 144,900 9,150 52,700 290,400 Credits Cash Accounts receivable Interest receivable Supplies Prepaid insurance Notes Receivable (short-term) Equipment Accumulated Depreciation-Equipment Accounts payable Salaries and Wages Payable Unearned revenue Notes Payable (long-term) Common Stock Retained eanings Service revenue Interest revenue Supplies Expense Repair and Maintenance Expense Rent Expense Depreciation Expense Insurance Expense Salaries and Wages Expense 67,400 108,600 22,500 10,100 91,000 226,000 149,800 42,300 22,800 27,750 18,700 3,450 Totals $740,500 $740,500 The following data are available to determine adjusting entries: A) Insurance purchased at the beginning of July for $9,150 provided coverage for twelve months (July 2015 through June 2016). The insurance coverage for July through December totaling $4,575 has now been used B) The company estimates $8,600 in depreciation each year C) Account showed $90,200 of supplies on hand at the end of the year D) An additional $350 of interest has been earned but has not yet been uncollected on the outstanding notes receivable E) Services in the amount of $6,050 were performed for customers who had previously paid in advance F) Services in the amount of $2,900 were performed; these services have not yet been billed or recorded

Explanation / Answer

Answer

Unadjusted Trial Balance

Adjustment entries effect

Adjusted Trial Balance [Answer]

Accounts

Debit

Credit

Debit

Credit

Debit

Credit

Cash

$                   70,270.00

$              70,270.00

A/R

$               1,21,700.00

$                 2,900.00 (F)

$           1,24,600.00

Interest receivable

$                     1,480.00

$                    350.00 (D)

$                1,830.00

Supplies

$               1,44,900.00

$                54,700.00 (C)

$               90,200.00

Prepaid Insurance

$                     9,150.00

$                  4,575.00 (A)

$                 4,575.00

Notes receivable - short term

$                   52,700.00

$               52,700.00

Equipment

$               2,90,400.00

$           2,90,400.00

Accumulated Depreciation Equipment

$                  67,400.00

$                  8,600.00 (B)

$                    76,000.00

A/P

$              1,08,600.00

$                 1,08,600.00

Salaries & Wages payable

$                  22,500.00

$                    22,500.00

Unearned Revenue

$                  10,100.00

$                 6,050.00 (E)

$                       4,050.00

Notes Payable Long Term

$                  91,000.00

$                    91,000.00

Common Stock

$              2,26,000.00

$                 2,26,000.00

Retained Earnings

$              1,49,800.00

$                 1,49,800.00

Service Revenue

$                  42,300.00

$                  8,950.00 [2900F + 6050E)

$                    51,250.00

Interest Revenue

$                  22,800.00

$                      350.00 (D)

$                    23,150.00

Supplies expense

$                                  -  

$              54,700.00 (C)

$               54,700.00

Repairs & Maintenance

$                   27,750.00

$               27,750.00

Rent expense

$                   18,700.00

$               18,700.00

Depreciation expense

$                                  -  

$                 8,600.00 (B)

$                 8,600.00

Insurance expense

$                                  -  

$                 4,575.00 (A)

$                 4,575.00

Salaries & Wages expense

$                     3,450.00

$                 3,450.00

TOTALS

$               7,40,500.00

$              7,40,500.00

$              77,175.00

$                77,175.00

$           7,52,350.00

$                 7,52,350.00

Unadjusted Trial Balance

Adjustment entries effect

Adjusted Trial Balance [Answer]

Accounts

Debit

Credit

Debit

Credit

Debit

Credit

Cash

$                   70,270.00

$              70,270.00

A/R

$               1,21,700.00

$                 2,900.00 (F)

$           1,24,600.00

Interest receivable

$                     1,480.00

$                    350.00 (D)

$                1,830.00

Supplies

$               1,44,900.00

$                54,700.00 (C)

$               90,200.00

Prepaid Insurance

$                     9,150.00

$                  4,575.00 (A)

$                 4,575.00

Notes receivable - short term

$                   52,700.00

$               52,700.00

Equipment

$               2,90,400.00

$           2,90,400.00

Accumulated Depreciation Equipment

$                  67,400.00

$                  8,600.00 (B)

$                    76,000.00

A/P

$              1,08,600.00

$                 1,08,600.00

Salaries & Wages payable

$                  22,500.00

$                    22,500.00

Unearned Revenue

$                  10,100.00

$                 6,050.00 (E)

$                       4,050.00

Notes Payable Long Term

$                  91,000.00

$                    91,000.00

Common Stock

$              2,26,000.00

$                 2,26,000.00

Retained Earnings

$              1,49,800.00

$                 1,49,800.00

Service Revenue

$                  42,300.00

$                  8,950.00 [2900F + 6050E)

$                    51,250.00

Interest Revenue

$                  22,800.00

$                      350.00 (D)

$                    23,150.00

Supplies expense

$                                  -  

$              54,700.00 (C)

$               54,700.00

Repairs & Maintenance

$                   27,750.00

$               27,750.00

Rent expense

$                   18,700.00

$               18,700.00

Depreciation expense

$                                  -  

$                 8,600.00 (B)

$                 8,600.00

Insurance expense

$                                  -  

$                 4,575.00 (A)

$                 4,575.00

Salaries & Wages expense

$                     3,450.00

$                 3,450.00

TOTALS

$               7,40,500.00

$              7,40,500.00

$              77,175.00

$                77,175.00

$           7,52,350.00

$                 7,52,350.00

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