12 13 Events: 14 a) Purchased $24,000 of equipment for use in the business, paid cash. 15 b) Earned $160,000 in service revenues for 2020, including $40,000 on credit and $120,000 collected in cash. 16 c) Collected accounts receivable, $24,000. 17 d) Customer paid $12,000 in advance for future services. 18 e) Paid accounts payable, $13,000. 19 f) On July 1, paid $20,000 to rent a building for the rest of 2020 and the first half of 2021. 20 g) Purchased $18,000 supplies on account for future use. 21 h) Declared and paid a $17,000 cash dividend. 22 Information for Adjustments: 23 i) Determined after a year-end count that $20,000 of supplies had been used during the year. 24 ]) Depreciation for the year on the equipment, $6,000. 25 k) Accrued $1,000 interest on an outstanding loan (promissory note). 26 ) Building rental expenses for the year, paid in transaction (f), had not yet been recorded. m) Wages of $12,000 earned by employees since the December 24 payroll were not yet paid. + 28 n) Vermillion provided $4,000 in service that had been prepaid in transaction (d). 29 ) During December, Vermillion provided $5,000 in service on account. p) Income tax for the year was $16,000. It will be paid in 2021. 31 32 27 30 Credit 1 Vermillion, Inc. 2 Adjusted Trial Balance 3 As of December 31, 2020 4 5 Debit 6 Cash 7 Accounts Receivable 8 Prepaid Expenses 9 Supplies (on hand) 10 Equipment 11 Accum. Deprec. (Equip.) 12 Accounts Payable 13 Unearned Revenue 14 Notes Payable 15 Common Stock 16 Retained Earnings 17 Dividends Declared 18 Service Revenue 19 Depreciation Expense 20 Interest Expense 21 Rent Expense 22 Supplies Expense 23 Wages Expense 24 Income Tax Expense 26 Total 27 Instructions Grid J-ES UnAdj TB Adjusted TB Fin Stmts 1 2 Vermillion, Inc. Unadjusted Trial Balance As of December 31, 2020 3 4 5 Debit Credit 5 6 Cash 7 Accounts Receivable 8 Prepaid Expenses 9 Supplies (on hand) 10 Equipment 11 Accum. Deprec. (Equip.) 12 Accounts Payable 13 Unearned Revenue 14 Notes Payable 15 Common Stock 16 Retained Earnings 17 Dividends Declared 18 Service Revenue 19 Depreciation Expense 20 Interest Expense 21 Rent Expense 22 Supplies Expense 23 Wages Expense 24 Income Tax Expense 26 Total 27 28