Question
Selected amounts from Trent Company's trial balance of 12/31/14 appear below: Prepare adjusting journal entries at year end, December 31, 2014, based on the following
Selected amounts from Trent Company's trial balance of 12/31/14 appear below:
Prepare adjusting journal entries at year end, December 31, 2014, based on the following supplemental information.
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 $15,000 as of 12/31/14.
c. Prepaid insurance at 12/31/14 is $25,000.
d. The rent payment of $180,000 covered the six months from November 30, 2014 through May 31, 2015.
e. Salaries and wages earned but unpaid at 12/31/14, $22,000.
Accounts payable | 160,000 |
Accounts receivable | 150,000 |
accum depreciation - equip | 200,000 |
Allowance for doubtful accounts | 20,000 |
Bonds payable | 500,000 |
Cash | 150,000 |
Common stock | 60,000 |
Equipment | 960,000 |
Prepaid insurance | 30,000 |
Interest expense | 10,000 |
Inventory | 300,000 |
Notes payable (due 6/1/15) | 200,000 |
Prepaid rent | 210,000 |
Retained earnings | 818,000 |
Salaries and wages expense | 328,000 |
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