Question
Stanleys is a coffee shop. On November 31st it had the following account balances: Service Revenue, $38,000 Unearned Revenue, $3,600 Interest Income $1,100 Prepaid insurance,
Stanleys is a coffee shop. On November 31st it had the following account balances:
Service Revenue, $38,000
Unearned Revenue, $3,600
Interest Income $1,100
Prepaid insurance, $2,400 (6 month semi-annual policy)
Note Payable, $7,500 at 8.7% (due February 15th)
Supplies, $1,200
Supplies Expense, $100
Salary Expense, $18,000
Interest Expense $120 Additional information at November 31st included:
Insurance policy was purchased October 1st.
Supplies on hand, $450
Money was borrowed on the note payable on August 30th
Unearned service revenue relate to unshipped products. $2,160 of products had not been shipped by year end.
The company pays $2,100 in salaries every two weeks. The year ended with 5 unpaid work days.
Other accrued expenses at year end were $457
Prepare adjusting journal entries for the above information.
How much revenue did Stanleys earn?
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