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Garvey Companys unadjusted trial balance includes the following account balances as of December 31, 2015: Debits Credits Cash $ 70,890 Accounts receivable 124,100 Interest receivable
Garvey Companys unadjusted trial balance includes the following account balances as of December 31, 2015: |
Debits | Credits | |||||
Cash | $ | 70,890 | ||||
Accounts receivable | 124,100 | |||||
Interest receivable | 1,560 | |||||
Supplies | 147,700 | |||||
Prepaid insurance | 9,350 | |||||
Notes Receivable (short-term) | 53,900 | |||||
Equipment | 296,000 | |||||
Accumulated DepreciationEquipment | $ | 68,700 | ||||
Accounts payable | 110,600 | |||||
Salaries and Wages Payable | 22,900 | |||||
Unearned revenue | 10,500 | |||||
Notes Payable (long-term) | 92,600 | |||||
Common Stock | 230,400 | |||||
Retained earnings | 152,600 | |||||
Service revenue | 43,100 | |||||
Interest revenue | 23,200 | |||||
Supplies Expense | 0 | |||||
Repair and Maintenance Expense | 28,350 | |||||
Rent Expense | 19,100 | |||||
Depreciation Expense | 0 | |||||
Insurance Expense | 0 | |||||
Salaries and Wages Expense | 3,650 | |||||
Totals | $ | 754,600 | $ | 754,600 | ||
The following data are available to determine adjusting entries: |
A) | Insurance purchased at the beginning of July for $9,350 provided coverage for twelve months (July 2015 through June 2016). The insurance coverage for July through December totaling $4,675 has now been used. |
B) | The company estimates $8,800 in depreciation each year. |
C) | Account showed $92,200 of supplies on hand at the end of the year. |
D) | An additional $390 of interest has been earned but has not yet been uncollected on the outstanding notes receivable. |
E) | Services in the amount of $6,250 were performed for customers who had previously paid in advance. |
F) | Services in the amount of $3,300 were performed; these services have not yet been billed or recorded. |
b. Prepare an adjusted trial balance by completing the related columns in the table bel Garvey Company Adjusted Trial Balance December 31, 2015 Credit Debit Cash Accounts receivable Interest receivable Supplies Prepaid insurance Notes receivable (short-term) Equipment Accumulated Depreciation-Equipment Accounts payable Salaries and Wages Payable Unearned revenue Notes payable (long-term) Common Stock Retained earnings Service revenue Interest revenue Supplies Expense Repairs and Maintenance Expense Rent Expense Depreciation Expense Insurance Expense Salaries and Wages Expense 70,890 70,890$ Totals
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