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(t Safari File Edit View History Bookmarks Window Help ezto.mh com tion Island Chapters 1 thru 7-Winter 201 Garvey Company's unadjusted trial balance includes the following account balances as of December 31 2015: Cash 69,290 118,100 1,360 140,700 8,850 50,900 282,000 Interest receivable 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 eamings Service revenue Interest revenue Supplies Expense Repair and Maintenance Expense Rent Expense 65.400 105,600 21,900 9,500 88,600 219,400 145,600 41,100 22,200 26,850 18,100 Insurance Expense Salaries and Wages Expense 3,150 Totals $719,300 $719,300 The following data are available to determine adjusting entries: A) Insurance purchased at the beginning of July for $8.850 provided coverage for twelve months (July 20 through June 2016). The insurance coverage for July through December totaling $4,425 has now been used B) The company estimates $8,300 in depreciation each year C) Account showed $87,200 of supplies on hand at the end of the year D) An additional $290 of interest has been earned but has not yet been uncollected on the outstanding notes receivable E) Services in the amount of $5,750 were performed for customers who had previously paid in advance. F) Services in the amount of $2.300 were performed; these services have not yet been billed or recorded.Explanation / Answer
Req a: Adjusting entries: A. Insurance Expense Account Dr. 2213 Prepaid insurance 2213 B. Depreciation expense-Equipment Account Dr. 8300 Accumulated depreciation-Equipment 8300 C. Supplies expense Account Dr. 53500 Supplies 53500 D. Interest receivable Dr. 290 Interest revenue 290 E. Unearned revenue Dr. 5750 Service revenue 5750 F. Accounts receivable dr. 2300 Sservice revenue 2300 ADJUSTED TRIAL BALANCE Dr Cr Cash 69290 Accounts receivable 120400 Interest receivable 1650 Supplies 87200 Prepaid insurance 6637 Notes receivable 50900 Equipment 282000 Accumulated depreciation 73700 Accounts payable 105600 Salaries and wages payable 21900 Unearned revenue 3750 Notes payable 88600 Common Stock 219400 Retained earnings 145600 Service revenue 49150 Interest revenue 22490 Supplies expense 53500 Repair and maintenance 26850 Rent expense 18100 Depreciation 8300 Insurance 2213 Salaries and wages expense 3150 TOTAL 730190 730190
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