Question
Sutton Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following
Sutton Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as at the end of the company's fiscal year, December 31, 2017: Account Titles Cash Debit $ 26,100 Credit Accounts receivable 10,700 Service supplies inventory 2,150 Prepaid insurance 1,550 Service trucks 42,300 Accumulated depreciation, service trucks $ 18,800 Other assets 6,800 Accounts payable 5,050 Note payable (three years; 8% each 11,800 December 31) Contributed capital (5,700 shares 17,500 outstanding) Retained earnings 11,150 Service revenue 56,500 Other expenses, excluding income tax 31,200 Totals $120,800 $120,800 Data not yet recorded at December 31, 2017, were as follows: a. Supplies inventory on December 31, 2017, reflecting $770 remaining on hand. b. Insurance expired during 2017, $620. c. Depreciation expense for 2017, $4,700. d. Wages earned by employees not yet paid on December 31, 2017, $1,950. e. Income tax expense, $3,800.
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