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Selected amounts from Cullumber Company's trial balance of 12/31/20 appear below: 1. Accounts Payable $ 121,500 2. Accounts Receivable 144,600 3. Accumulated DepreciationEquipment 207,100 4.
Selected amounts from Cullumber Company's trial balance of 12/31/20 appear below:
1. | Accounts Payable | $ 121,500 | |||
2. | Accounts Receivable | 144,600 | |||
3. | Accumulated DepreciationEquipment | 207,100 | |||
4. | Allowance for Doubtful Accounts | 16,000 | |||
5. | Bonds Payable | 504,700 | |||
6. | Cash | 150,700 | |||
7. | Common Stock | 51,600 | |||
8. | Equipment | 872,100 | |||
9. | Prepaid Insurance | 31,300 | |||
10. | Interest Expense | 10,100 | |||
11. | Inventory | 317,800 | |||
12. | Notes Payable (due 6/1/21) | 198,900 | |||
13. | Prepaid Rent | 248,400 | |||
14. | Retained Earnings | 826,000 | |||
15. | Salaries and Wages Expense | 316,600 |
Prepare adjusting journal entries at year end, December 31, 2020, based on the following supplemental information. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
a. | The equipment has a useful life of 15 years with no salvage value. (Straight-line method being used.) | ||
b. | Interest accrued on the bonds payable is $ 15,141 as of 12/31/20. | ||
c. | Prepaid insurance at 12/31/20 is $ 18,400. | ||
d. | The rent payment of $ 248,400 covered the six months from November 30, 2020 through May 31, 2021. | ||
e. | Salaries and wages earned but unpaid at 12/31/20, $ 21,800. |
No. | Account Titles and Explanation | Debit | Credit |
a. | |||
b. | |||
c. | |||
d. | |||
e. | |||
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