Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Scotsman Company prepares quarterly financial statements. Below are listed some selected accounts and their balances in the September 30 trial balance before any adjustments

image text in transcribed
image text in transcribed
1. Scotsman Company prepares quarterly financial statements. Below are listed some selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the month of September SCOTSMAN COMPANY Trial Balance (Selected Accounts) September 30, 2018 Credit Debit Supplies 2,700 Prepaid Insurance 3,150 Office Equipment 16,200 Accumulated Depreciation---Equipment Unearned Rent Revenue 1,000 1,200 (Note: Debit column does not equal credit column because this is a partial listing of selected account balances) An analysis of the account balances by the company's accountant provided the following additional information: 1. A physical count of office supplies revealed that 800 have been used. 2. A three-year life insurance policy was purchased on June 1 for 3,600. 3. Office equipment depreciated 750 per quarter. 4. one fourth of the unearned rent revenue was earned during the first quarter. Requirements: A. prepare the prepare the adjusting entries that should be made by Scotsman Company on September 30 taking in consideration that adjusting entries are made quarterly. B. what is the adjusted balance for the following accounts: - Prepaid insurance - Accumulated Depreciation Equipment. - Unearned Rent Revenue. c. compute the book value of the equipment on Sept30,2018 0 (11 Points) Enter your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: V.K. Gopal

1st Edition

9788174467461

More Books

Students also viewed these Accounting questions