Problem A-Z Adjusting and Reversing Entries At December 31, 2017, Hazelnut Corp.'s unadjusted trial balance was as follows: Cash .............................................................................................. $ 39,590 Accounts Receivable ..................................................................... 69,000 Allowance for Doubtful Accounts ................................................... Merchandise Inventory .................................................................. 54,720 Prepaid Rent .................................................................................. 24,000 Investment in Pecan Corp. Bonds .................................................. 70,000 Plant and Equipment ..................................................................... 156,000 Accumulated Depreciation ............................................................. Accounts Payable .......................................................................... Bonds Payable ............................................................................... Common Shares ............................................................................ Retained Earnings ......................................................................... Sales Revenue .............................................................................. Cost of Goods Sold ........................................................................ 154,400 Transportation-Out ......................................................................... 11,000 Salaries and Wages Expense ........................................................ 32,000 Interest Expense ............................................................................ 2,040 Rent Revenue ................................................................................ Miscellaneous Expense ................................................................. 890 Insurance Expense ........................................................................ 6,550 $620,190 Additional data: The balance in the Insurance Expense account contains the premium costs of three 1. policies: Policy 1, remaining cost of $2,550, 1-yr. term, effective May 1, 2016; Policy 2, original cost of $2.700. 3-yr. term. effective Oct. 1, 2017; Policy 3, original cost of $1,300, 1-yr. term, effective Jan. 1, 2017. On September 30, 2017, Hazelnut received $14,400 rent from a lessee for an eighteen- $ 500 14,740 11,370 90,000 170,000 97,180 222,000 14,400 620,190 month lease beginning on that date, which was credited to the Rent Revenue account. All depreciable assets are depreciated at 10% per year. However, any acquisitions and disposals during the year are depreciated at half this rate. There were no acquisitions of PPE during 2017. On December 31, 2017, the balance in the Plant and Equipment account was $230,000. On December 28, 2017, the bookkeeper incorrectly credited Sales Revenue for a receipt on account from a regular customer of $10,000
