Question
Please enter the following information, taken at year-end, in the trial balance by entering the letter (on the left) and amount (on the right) of
Please enter the following information, taken at year-end, in the trial balance by entering the letter (on the left) and amount (on the right) of each adjustment in the 'Adjustments' column, for the appropriate accounts. Then fill in the 'Adjusted Trial Balance' column with the balances of each account.
- $920 of interest has accrued on a note receivable and is unrecorded.
- The yearly depreciation on the equipment is $500.
- $10,000 of advertising Holden Corp. placed in the local newspaper is unrecorded and unpaid.
- Of the $7,100 consulting fees Holden Corp. received in advance, $4,200 has not yet been earned.
- Furniture purchased in a previous year for $13,000 will be worthless after five years.
- A review of the $10,000 unadjusted balance in the prepaid insurance account shows a remaining balance of $5,800 at the end of the year.
- Property taxes of $2,800 have accrued but are unrecorded.
- Unpaid and unrecorded salaries at year-end totalled $10,000.
Holden Corp.Trial BalanceDecember 31, 2014 Unadjusted Adjusted Trial Trial BalanceAdjustmentsBalanceAccountDr.Cr.Dr.Cr.Dr.Cr.Accounts receivable1,000 Accumulated depreciation, equipment 26,700 Accumulated depreciation, furniture 9,800 Advertising expense12,100 Advertising payable 0 Cash79,340 Consulting revenue earned 7,600 Depreciation expense, equipment0 Depreciation expense, furniture0 Equipment38,400 Furniture13,000 Insurance expense12,400 Interest earned 700 Interest receivable0 Notes receivable12,500 Prepaid insurance10,000 Property taxes expense14,600 Property taxes payable 0 Rent earned 1,000 Retained earnings 440 Salaries expense5,900 Salaries payable 0 Share capital 145,900 Unearned consulting revenue 7,100 Totals199,240199,240
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