Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On March 31, 2021, Bramble Rental Agency Inc's trial balance included the following selected unadjusted account balances. The company's year end is December 31 and

image text in transcribed
On March 31, 2021, Bramble Rental Agency Inc's trial balance included the following selected unadjusted account balances. The company's year end is December 31 and it adjusts its accounts quarterly. Credit Debit $13,300 2,800 22.400 Prepaid insurance Supplies Equipment Accumulated depreciation-equipment Deferred revenue Loan payable, due 2023 Rent income Salaries expense $5,400 9,390 20,400 32.200 12,800 An analysis of the accounts shows the following: 1. 2. 3. The equipment, which was purchased on January 1, 2020, is estimated to have a useful life of four years. The company uses straight-line depreciation. One third of the deferred revenue related to rent is still unearned at the end of the quarter. The bank loan payable has an interest rate of 6%. Interest is paid on the first day of each following month and was last paid March 1, 2021 Supplies on hand total $920 at March 31. The one-year Insurance policy was purchased for $13,300 on January 1. Income tax is estimated to be $3,090 for the quarter, 4. 5. 6. On March 31, 2021, Bramble Rental Agency Inc's trial balance included the following selected unadjusted account balances. The company's year end is December 31 and it adjusts its accounts quarterly. Credit Debit $13,300 2,800 22.400 Prepaid insurance Supplies Equipment Accumulated depreciation-equipment Deferred revenue Loan payable, due 2023 Rent income Salaries expense $5,400 9,390 20,400 32.200 12,800 An analysis of the accounts shows the following: 1. 2. 3. The equipment, which was purchased on January 1, 2020, is estimated to have a useful life of four years. The company uses straight-line depreciation. One third of the deferred revenue related to rent is still unearned at the end of the quarter. The bank loan payable has an interest rate of 6%. Interest is paid on the first day of each following month and was last paid March 1, 2021 Supplies on hand total $920 at March 31. The one-year Insurance policy was purchased for $13,300 on January 1. Income tax is estimated to be $3,090 for the quarter, 4. 5. 6

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

Financial Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

6th Canadian edition

1118644948, 978-1118805084, 1118805089, 978-1118644942

More Books

Students also viewed these Accounting questions

Question

What do you think you will bring to the organization?

Answered: 1 week ago

Question

describe and present a summary of data you have collected.

Answered: 1 week ago

Question

collect, organise and store quantitative data in an effective way;

Answered: 1 week ago