Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 1 [20 points] Please enter the following information, taken at year-end, in the trial balance by entering the letter (on the left) and amount
Question 1 [20 points] 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. a. Interest of $510 has accrued on a bank loan and is unrecorded. b. $170 of interest has accrued on a note receivable and is unrecorded. c. The estimated yearly depreciation on the building is $200. d. ABC Inc. purchased furniture a previous year for $17,000 and plans to sell this furniture for $500 at the end of its ten-year useful life. e. A review of the $18,500 unadjusted balance in the prepaid rent account shows a remaining balance of $14,000 at the end of the year. f. $8,400 of the $9,100 consulting fees paid to ABC Inc. in advance has not yet been earned. g. ABC Inc. rents part of its building for a monthly fee of $3,500. The rent for the month just past has not been received. h. $1,000 of the advertising paid for in advance has been published by the newspaper. Adjusted Trial Balance Dr Cr. ABC Inc. Trial Balance December 31, 2014 Unadjusted Trial Balance Adjustments Dr Cr. Dr Cr. 300 6,600 6,600 4,000 35,000 49,060 Account Accounts payable Accumulated depreciation, building. Accumulated depreciation, furniture Advertising expense Building Cash Accounts payable Accumulated depreciation, building, Accumulated depreciation, furniture Advertising expense Building Cash Consulting revenue earned Depreciation expense, building Depreciation expense, furniture Furniture Interest earned Interest expense Interest payable Interest receivable Notes receivable Prepaid advertising Prepaid rent Rent earned Rent expense. Rent receivable Retained earnings Share capital Short-term notes payable Unearned consulting revenue Utilities expense Totals 300 6.600 6,600 4,000 35,000 49,060 1.000 0 0 17,000 6,200 1,400 0 0 12,000 2,400 18,500 4.000 8,600 0 460 102,500 11,500 9,100 300 148,260 148,260
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started