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Question 6 [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 6 [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. $1,700 of the consulting fees paid to Allarco Inc. in advance has been earned. b. $1,100 of the television advertising paid for in advance has been used. c. The yearly depreciation on the furniture is $500. d. $7,100 of property taxes have accrued and are unrecorded. e. Interest of $900 on notes receivable is unrecorded and unpaid. f. Buildings purchased in a previous year for $35,000 will be sold after ten years for $8,500. g. Allarco Inc. purchased equipment in a previous year for $39,625 and plans to sell this equipment for $2,500 at the end of its five-year useful life. h. $830 of interest has accrued on a note payable and is unrecorded. Adjusted Trial Balance Dr. Cr. Adjustments Dr. Cr. Allarco Inc. Trial Balance December 31, 2014 Unadjusted Trial Balance Dr. Cr. 400 9,200 24,200 31,500 1,900 35,000 122,900 13,600 0 0 0 39,625 42.200 Account Accounts payable Accumulated depreciation, building Accumulated depreciation, equipment Accumulated depreciation, furniture Advertising expense Building. Cash Consulting revenue earned Depreciation expense, building. Depreciation expense, equipment Depreciation expense, furniture Equipment Furniture Interest earned Interest expense Interest payable Interest receivable Notes receivable Prepaid advertising. Property taxes expense Property taxes payable Retained earnings Share capital Short-term notes payable Supplies Unearned consulting revenue Totals 3,600 4,000 0 0 10.500 5,700 7,600 0 300 169,825 12,000 400 5,200 269,825 269,825
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