Question
Question: Question 4 (15 marks) The December 31, 2019, trial balance of Bob's Delivery Service, before adjusting entries, included the following selected accounts.Note: This is
Question:Question 4 (15 marks)
The December 31, 2019, trial balance of Bob's Delivery Service, before adjusting entries, included the followingselectedaccounts.Note: This is a partial trial balance.Many accounts are not shown.All accounts have a normal balance.
Accounts receivable176,000
Notes receivable200,000
Unearned delivery revenue24,000
Prepaid rent36,000
Prepaid insurance18,000
Equipment240,000
Accumulated depreciation: equipment61,250
Salaries expense120,000
Delivery revenue473,300
Additional data:
a)The equipment has an estimated life of 10 years, no residual value, and the double declining balance method is used for calculating depreciation.
b)The prepaid rent was payment for a six-month lease beginning on November 1, 2019.
c)The prepaid insurance represents the annual premium on a policy providing coverage starting September 1, 2019.
d)On September 11, 2019, we accepted a $400,000 note from a customer in payment for delivery services.It is a six month note and the interest rate is 5%.You need to count exact days to determine the interest.
e)The supplies inventory on Maybe1, 2019, was $8,350. Supplies costing $16,650 were acquired during the year. A count on Dec. 31, 2019, indicated supplies on hand of $4,810.
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