how can i Record changes in adjusted trial balance, if given post closing trial. how can i Record journal entries based on information below?
ACC 2101 - Extra credit problem Page 3 Additional information regarding items on the 12/31/x1 post-closing trial balance: 1) A four-month note receivable (note receivable "1") was initiated on December 1, 20x1 for: $ 4,200 6% was the stated interest rate on the note and it was considered appropriate for this type of note. The full principal and interest is due on April 1, 20x2. 2) A three-year liability insurance policy was purchased on March 1, 20x1 for: 5,220 3) The theater equipment was acquired on February 1, 20x1 for a cash payment of: $ 12,160 The life of the theater equipment is estimated to be (number of years): The residual value (as a percentage of original cost) is estimated at: 25% follows: 4) The office furniture was acquired on January 1, 20x1. Terms of purchase were as date of first payment: 1/1/x1 Amount of first payment: S 550 Five additional payments due semi-annually, starting on 7/1/x1 (continuing with 1/1/x2, 7/1/x2, 1/1/x3 and 7/1/x3) were accepted as zero-interest bearing notes . The semi-annual payment is: $ 550 The appropriate annual interest rate in the circumstances was determined to be: 8% [The note payable described above is referred to as Note Payable "A".] The life of the office furniture is estimated to be (number of years): 20 The residual value (as a percentage of original cost) is estimated at: 20% 5) Computers were purchased on February 1, 20x1 for a cash payment of: S 2,880 The life of the computers is estimated to be (number of years): The residual value (as a percentage of original cost) is estimated at: 5% ation took two 6) The HCC rents space in several different ways. Certain groups rent space on a regular basis (e.g., twice a week for six months [long-term rentals]); certain groups rent space for a shorter duration (e.g., once a week for one month [short-term rentals]); and some rent space as needed [daily rentals]. Adjustments were made on 12/31/x1 to reflect the amounts of unearned rental revenues. The balances appear on the post-closing trial balance above. quon cost A note rece to as a number of tommy ingown. tances:ACC 2101 - Extra credit problem Hudson Community Center Page 1 The Hudson Community Center ("HCC") recently completed its first year of operations. The Center provides space to local groups for various purposes: community theater rehearsals, choral group rehearsals, band and orchestra rehearsals, dance classes, play readings, book group meetings, monthly cost of: lectures, neighborhood group meetings, etc. The HCC rented temporary space in a local school at a $ 1,450 During 20x2 the HCC plans to purchase its own building. The post-closing trial balance for the Hudson Community Center as of December 31, 20x1 is presented below: Hudson Community Center Post-closing Trial Balance December 31, 20x1 Cash $ 22,360 Interest Receivable 21 Notes Receivable "1" 4,200 Prepaid Insurance 3, 770 Community Center supplies 815 Office supplies 390 Theater equipment (sound and lighting) 12,160 Accumulated depreciation - theater equipment S 2,090 Office Furniture 2,999 Accumulated depreciation - office furniture 120 Computers 2,880 Accumulated depreciation - computers 836 Accounts payable 1,989 Unearned short-term rental revenue 5,600 Unearned long-term rental revenue perse . the 10,850 Notes payable "A" 2,200 Discount on notes payable "A" 124 Common Stock (shares outstanding) 2,000 20,000 Retained Earnings 6,033 TOTAL 49,718 $ 49,718 Company policies: No reversing entries are used. All numbers are rounded to the nearest dollar. The straight-line method of depreciation is used for all fixed assets. All depreciation is calculated to the nearest month. Rental revenue accounts are initially credited when cash is received for all rentals of space. At the end of the year, adjustments are made for amounts that are still unearned. The Center prepares adjusting entries and financial statements once a year, on December 31st
