Chapter 4 4.1. Manhattan Park adjusts its books cach month and closes its books on December 31 each year. The trial balance at January 31, 2010, before adjustments, follows: Debit Credit Cash. 6,600 5,400 Supplies. Unexpired Insurance Equipment. Accumulated Depreciation: Equipment. Unearned Admission Revenue 12,600 72,000 S 18,000 12,000 Capital Stock Retained Earnings, January 1, 2010. 20,000 38,200 Admissions Revenue. 27,600 Salaries Expense. Utilities Expense. Rent Expense. 8,100 5,700 5.400 S115.800 S115.800 Refer to the above data. According to attendance records, $8,200 of the Unearned Admission Revenue has been earned in January. Compute the amount of admissions revenue to be shown in the January income statement: a $35,800. b $19,400. e $8,200. d $3,800. Refer to the above data. At January 31, the amount of supplies on hand is $2,300. What amount is shown on the January income statement for supplies expense? $2,300. b $5,400. e $3,100. $7,700. 3 Refer to the above data. The equipment has an original estimated useful life of six years. Compute the book value of the equipment at January 31 after the proper January adjustment is recorded: . $1,000. b $71,000. e $53,000. $60,000. 4 Refer to the above data. Employees are owed $1,200 for services since the last payday in January to be paid the first week of February. No adjustment was made for this item. As a result of this error: - Assets at January 31 are overstated. b January net income is overstated. Liabilities at January 31 are overstated. d Owners' equity at January 31 is understated. 5. Refer to the above data. On August 1, 2009, the park purchased a 12-month insurance policy. The necessary adjusting entry at January 31 includes which of the following entries? (Hint: The company has adjusted its books on a monthly basis.) A debit to Insurance Expense for $1,050. b A credit to Unexpired Insurance for $11,550. A credit to Unexpired Insurance for $1,800. d A debit to Unexpired Insurance for $10,800. a om00 ot January