Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

LUZON COMPANY Trial Balance For the month Ended March, 2020 Credit Debit $ 40,000 20,000 5,000 5,100 2,400 60,000 Cash Accounts Receivable Supplies Prepaid rent

image text in transcribedimage text in transcribedimage text in transcribed

LUZON COMPANY Trial Balance For the month Ended March, 2020 Credit Debit $ 40,000 20,000 5,000 5,100 2,400 60,000 Cash Accounts Receivable Supplies Prepaid rent Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Notes Payable Share Capital-Ordinary Dividends Service Revenue Salaries and Wages Expense Utilities Expense Rent Expense 25,000 10,000 20,000 54,000 1,500 55,000 15,000 5,000 10,000 164,000 164,000 Analysis reveals the following additional data: 1. A physical count of office supplies revealed $1,000 on hand on March 31. 2. A one-year insurance policy was purchased on March 1 for $2,400. 3. A three months' rent was paid in advance on March 1 for $5,100. 4. Office equipment is depreciated for $3,000 per year. 5. The unearned service revenue was earned on March 31. 6. Accrued salaries on March 31 are $ 6,000. Credit Adjustment Entries S.no Account Tittle 1 Supplies Expenses A/C Supplies A/C Debit 4,000 $ $ 4,000 2 $ 200 Insurance Expenses A/C Prepaid Insurance A/C $ 200 3 $ 1,700 Rent Expenses A/C Prepaid Rent A/C $ 1,700 4 $ 3,000 Depreciation Expenses A/C Accumulated Depreciation A/c-Equipment $ 3,000 5 $ 10,000 Service Revenue A/C Unearned revenue A/C $ 10,000 6 6,000 Salaries and Wages Expenses A/C Salaries and wages payable A/C S 6,000

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

Recommended Textbook for

Modern Auditing

Authors: William C. Boynton, Walter G. Kell

6th Edition

0471596876, 9780471596875

More Books

Students also viewed these Accounting questions