Question
Date Accounts Debits Credits 11/8/2019 Dr Cash 1500 Cr Common Stock 1500 11/11/2019 Dr Advertising Expense 125 Cr Accounts Payable 125 11/11/2019 Dr Supplies (Assets)
Date | Accounts | Debits | Credits | |
11/8/2019 | Dr | Cash | 1500 | |
Cr | Common Stock | 1500 | ||
11/11/2019 | Dr | Advertising Expense | 125 | |
Cr | Accounts Payable | 125 | ||
11/11/2019 | Dr | Supplies (Assets) | 450 | |
Cr | Accounts Payable | 450 | ||
11/14/2019 | Dr | Depreciation Expense | 1250 | |
Cr | Accumulated Depreciation | 1250 | ||
11/16/2019 | Dr | Cash | 2,000 | |
Cr | Accounts Payable | 2,000 | ||
11/17/2019 | Dr | Equipments | 900 | |
Cr | Cash | 900 | ||
11/20/2019 | Dr | Cash | 450 | |
Cr | Sales Revenue | 450 | ||
11/25/2019 | Dr | Cash | 150 | |
Cr | Service Revenue | 150 | ||
11/30/2019 | Dr | Prepaid Insurance | 1320 | |
Cr | Cash | 1320 | ||
11/30/2019 | Dr | Accounts Payable | 1895 | |
Cr | Cash | 1895 |
1.A count reveals that 30%of supplies were used during November.
2.Liamestimates that all of his equipment will have a useful life of 4years. (Assume Liam decides to record a full months worth of depreciation, regardless of when the equipment was obtained by the business.)
3.Liams grandmother has decided to charge interest of 5% on the note payable extended on November 16. The loan plus interest is to be repaid in 24 months. (Assume that half a month of interest accrued during November.)
4.On November 30, a friend of Liams asks him host a valuation booth at a sneaker shop. Liam agrees and runs a booth on the 30th for 3 hours. The next day, Liam prepares an invoice for $500 and emails it to his friend. The friend says he will pass the invoice along to the shop and it will be paid sometime in December.
QUESTION: Prepare an adjusted trial balance.
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