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Question 1 (10 marks) Before year-end adjustments are made, the December 31, 2019 trial balance of Ahmads Adventures contains revenue of $30,000 and expenses of
Question 1 (10 marks)
- Before year-end adjustments are made, the December 31, 2019 trial balance of Ahmads Adventures contains revenue of $30,000 and expenses of $7,500. Adjustments are necessary for the following items:
- Depreciation for the year is $2,000.
- Revenue earned but not yet billed is $4,000.
- Accrued interest expense is $1,000.
- Revenue collected in advance that is now earned is $4,000.
- Portion of prepaid insurance expired during the year is $2,750.
Required:
- Record the above adjusting entries in 2019 Journal. [5 Marks]
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Internal Auditing Assurance And Advisory Services
Authors: Kurt R. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Cris Riddle
5th Edition
1634541367, 978-1634541367
