Question
Problem 1: The unadjusted trial balance of Inaknot Insurance Corp. includes the following account balances at December 31, 2020, its fiscal yearend. Assume all accounts
Problem 1:
The unadjusted trial balance of Inaknot Insurance Corp. includes the following account balances at December 31, 2020, its fiscal yearend. Assume all accounts have normal debit or credit balances.
Prepaid insurance
Truck
Unearned commissions revenue
Rent earned
Advertising expense
Salaries expense
Supplies expense
$1,800
18,000
9,000
0
5,000
25,000 900
The following information is available:
a.A physical count indicates that $200 of supplies have not been used at
December 31.
b.The prepaid insurance consists of a oneyear policy, effective October 1.
c.The truck was purchased on July 1; it is expected to have a useful life of 6 years. No depreciation has been recorded during the year.
d.The unearned commission revenue at December 31 is $7,500.
e.Two days of salary amounting to $200 remain unpaid and unrecorded at December 31; the amounts will be included with the next Friday's payment, which will be in January.
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