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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. |
a. | Prepare the adjusting entries that are required at the end of the period. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) |
b. | Prepare an adjusted trial balance by completing the related columns in the table below. |
Garvey Company Adjusted Trial Balance December 31, 2015 Debit AcCoLnts recevabe Interest moaivable Prnaid insuranre Nctes receivable (ahort-term Accumulated Depreclation Equlpment abil: Salaries and eges Payable Nctes payabie (long-term Rapairs and Maintenarce Experso Dapreriatian Expense alas and Wagns Expiense Tota 3
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