Question
Circuit City Company adjusts its accounts every month. Below is the companys unadjusted trial balance. Additional information is provided for use in preparing the companys
Circuit City Company adjusts its accounts every month. Below is the companys unadjusted trial balance. Additional information is provided for use in preparing the companys adjusting entries for the month. (Bear in mind that adjusting entries only for the month of December has not made.): Circuit City Company Unadjusted Trial Balance December 31, 20XX Cash Prepaid rent Land Building Building depreciation Office equipment Depreciation of office and equipment Notes payable Accounts payable Unearned revenue Income tax payable Retained earnings Capital Retained earnings Dividends Admission revenue Concession revenue Salaries $$ 20,000 31,200 120,000 168,000 36,000 14,000 12,000 180,000 4,400 1,000 4,740 46,610 40,000 8,000 305,200 14,350 15,000 68,500 Page 2 of 6
Rent Utilities expense Office equipment depreciation Building depreciation Income tax expense Interest expense Total Data: 94,500 9,500 4,200 4,900 40,000 10,500 $622,300 $622,300 i. Film rental expense for the month is $15,200. However, the film rental expense for several months has been paid in advance. ii. The building is being depreciated over a period of 20 years. iii. On the first of each month, the company pays the interest that accrued in the prior month on its note payable amount $1,500. iv. Salaries earned by employees but not recorded or paid as of December amount $1,700. v. Utilities expense is recorded as monthly bills are received. No adjusting entries for utilities expense are made at month end.
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