Question
Client: Lanny, Inc. Request for Account Balances You have the following account balances for Lanny, Inc. as of its December 31 fiscal year end. Lanny,
Client: Lanny, Inc.
Request for Account Balances
You have the following account balances for Lanny, Inc. as of its December 31 fiscal year end.
Lanny, Inc. Selected Financial Data 12/31/21 | |
Cash | 76,800 |
Salaries Payable | 125,000 |
Unearned Service Revenue | 42,000 |
Service Revenue | 415,000 |
Salaries Expense | 198,000 |
Other information provided by Lanny follows:
- The amount of salaries paid during fiscal year 2021 amounted to $215,000, and $375,000 was received for services performed during the year.
- The company has just one insurance policy on record. The annual insurance payment is made on April 1. The insurance coverage period runs from April 1, current year to March 31, the following year. On April 1, 2021 the company paid its annual insurance premium of $41,200. The client notes that insurance premiums have been increasing every year for the past three or four years and is thinking about changing its insurance provider. Last year the company paid an annual insurance premium of $38,400.
Lanny requires the following five account balances: Unearned Service Revenue 1/1/21; Salaries Payable 1/1/21; Cash 12/31/21; Prepaid Insurance 1/1/21; and Insurance Expense 12/31/21.
Exhibit I: Selected account balances for Lanny, Inc. | |
Unearned Service Revenue, beginning balance 1/1/21 | $ |
Salaries Payable, beginning balance 1/1/21 | $ |
Cash, year ending 12/31/21 | $ |
Prepaid Insurance, beginning balance 1/1/21 | $ |
Insurance Expense, year ending 12/31/21 | $ |
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