Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Help Required information [The following information applies to the questions displayed below.) Learn to Play, Inc., is a one-person company that provides private piano lessons.
Help Required information [The following information applies to the questions displayed below.) Learn to Play, Inc., is a one-person company that provides private piano lessons. Its unadjusted trial balance at December 31, 2018, follows, along with information about selected accounts. Credit Account Names Cash Supplies Deferred Revenue Debit $24,400 360 $ 1,560 Salaries and Wages Payable 0 or Income Tax Payable 0 Interest Payable 0 Further Information As reported on December 31 bank statement. Based on count, only $230 of supplies still exist. of this amount, $560 was received for December lessons and $1,000 for January lessons. The employee was paid $500 for 10 days of work through December 29. She has not yet been paid for work December 30 and 31. The company has paid last year's income tax but not this year's taxes. The company has not paid the $100 of interest owed on its notes payable for the current period. This one-year note was taken out this year on December 1. This amount was contributed for common stock in prior years. This is the balance reported at the end of last year. Most customers pay cash for lessons each time they are provided, but some customers pay in advance. The company's employee worked through December 31. This is the cost of supplies used through November 30. The company has not paid the $100 of interest owed on its notes payable for the current period. The company has an average tax rate of 308. Notes Payable Common Stock 12,000 1,000 Retained Earnings Service Revenue 3,600 26,160 Salaries and Wages Expense Supplies Expense Interest Expense 18,700 860 0 Income Tax Expense Totals 0 $44,320 $44,320 1 2. 3. 4 5 Record the adjusting entry for supplies. Note: Enter debits before credits. Transaction General Journal Debit Credit a
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started