Manhattan Park adjusts its books each month and closes its books on December 31 each year. The trial balance at January 31, 2010, before adjustments, follows:

Debit Credit

Cash.............................................................................. $ 6,600

Supplies........................................................................ 5,400

Unexpired Insurance..................................................... 12,600

Equipment..................................................................... 72,000

Accumulated Depreciation: Equipment......................... $ 18,000

Unearned Admission Revenue...................................... 12,000

Capital Stock................................................................. 20,000

Retained Earnings, January 1, 2010.............................. 38,200

Admissions Revenue..................................................... 27,600

Salaries Expense........................................................... 8,100

Utilities Expense........................................................... 5,700

Rent Expense................................................................ 5,400 _________

Total $115,800 $115,800

a- According to attendance records, $8,200 of the Unearned Admission Revenue has been earned in January. Compute the amount of admissions revenue to be shown in the January income statement:

Answer 1

$35,800

b- At January 31, the amount of supplies on hand is $2,300. What amount is shown on the January income statement for supplies expense?

Answer 2

$3,100

c- The equipment has an original estimated useful life of six years. Compute the necessary adjusting at January 31.

Answer 3

$12,000

d- Compute the book value of the equipment at January 31 after the proper January adjustment is recorded:

Answer 4

$60,000