Question
Problem 3-6 The following are the trial balance and the other information related to Carla Perez, a consulting engineer. CARLA PEREZ, CONSULTING ENGINEER TRIAL BALANCE
Problem 3-6 The following are the trial balance and the other information related to Carla Perez, a consulting engineer. CARLA PEREZ, CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2017 Debit Credit Cash $29,500 Accounts Receivable 52,300 Allowance for Doubtful Accounts $799 Supplies 2,290 Prepaid Insurance 1,170 Equipment 27,800 Accumulated Depreciation-Equipment 6,950 Notes Payable 7,200 Owners Capital 35,863 Service Revenue 106,425 Rent Expense (13 months of rent) 10,387 Salaries and Wages Expense 31,170 Utilities Expenses 1,850 Office Expense 770 Totals $157,237 $157,237 1. Fees received in advance from clients $6,120, which were recorded as revenue. 2. Services performed for clients that were not recorded by December 31, $5,125. 3. Bad debt expense for the year is $1,536. 4. Insurance expired during the year $475. 5. Equipment is being depreciated at 10% per year. 6. Carla Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2017. 7. Rent of the building is $799 per month. The rent for 2017 has been paid, as has that for January 2018, and recorded as Rent Expense. 8. Office salaries and wages earned but unpaid December 31, 2017, $2,643. Correct answer. Your answer is correct. From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2017.
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