Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jackson Consulting Unadjusted Trial Balance December 31, 2018 Debits Credits Cash $ 11,500 Accounts Receivable 3,500 Supplies 1,200 Prepaid Rent 24,000 Equipment 14,000 Accumulated Depreciation

Jackson Consulting

Unadjusted Trial Balance December 31, 2018

Debits Credits

Cash $ 11,500

Accounts Receivable 3,500

Supplies 1,200

Prepaid Rent 24,000

Equipment 14,000

Accumulated Depreciation $1,400

Accounts Payable 1,900

Unearned Service Revenue 2,800

Common Stock 10,300

Retained Earnings 7,500

Dividends 4,500

Service Revenue 91,350

Salaries Expense 55,000

Advertising Expense 900

Utilities Expense 650

Total: Debits =$115,250 Credits total = $115,250

Additional Information:

1.) The equipment was purchased on January 1, 2017. The useful life is estimated to be 10 years.

2.) As of December 31, 2018, the company had accrued salaries of $950.

3.) Of the balance in the unearned revenue account, $500 had not been earned by year -end.

4.) On December 1, 2018, the company paid $900 for four months of advertising.

5.) A count of supplies on December 31, 2018 showed $400 of supplies had been used during the year.

6.) On May 1, 2018, the company rented an office building for one year and paid $24,000 in cash.

The adjusting journal entry to record (f) above would include:

A.

a debit to rent expense for $10,000

B.

a debit to prepaid rent for $16,000

C.

a credit to rent expense for $10,000

D.

a credit to cash for $16,000

E.

a credit to prepaid rent for $16,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions