Question
2% of the total accounts receivable is doubtful of collection. Depreciation for the year is not yet recognized. The equipment has a 10-year useful life.
- 2% of the total accounts receivable is doubtful of collection.
- Depreciation for the year is not yet recognized. The equipment has a 10-year useful life. Sunray Co. Uses the straight line method.
- The notes payable ws issued on September 30, 20x1. Interest of 10% is due annually.
- Sunray rents its space. Monthly rental of 2,000 i due at the end of each month. Sunray Co. Has not yet paid its rent forthe month of December 31, 20x1.
requirement:
a. Prepare the year end adjusting entry
Trial Balance
Accounts
Dr. Cash 60,000
Dr. AR 50,000
Dr. Inventory 40,000
Dr. Equipment 100,000
Cr. Accum. dep. 10,000
Cr. AP 5,000
Cr. Notes Payable 24,000
Cr. Sun Ray, Capital 104,000
Cr. Service Fee 220,000
Dr. Salaries Exp. 96,000
Dr. Rent Exp. 22,000
requirement:
a. Prepare the year end adjusting entry
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Fundamental Accounting Principles Volume I
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
978-1260305821
