Question
The adjusted trial balance for Westerberg, Inc. as of 12/31/14 appears below. All of the accounts have their standard or normal debit/credit balance. Please show
The adjusted trial balance for Westerberg, Inc. as of 12/31/14 appears below. All of the accounts have their standard or normal debit/credit balance. Please show your work!
Account | 12/31/14 Balance |
Accounts Payable | 20,000 |
Accounts Receivable | 50,000 |
Accumulated Depreciation Equipment | 40,000 |
Cash | 20,000 |
Common Stock | 55,000 |
Cost of Goods Sold | 10,000 |
Dividends Declared | 5,000 |
Dividends Payable | 10,000 |
Equipment | 400,000 |
Insurance Expense | 12,000 |
Interest Expense | 2,500 |
Interest Payable | 2,000 |
Inventory | 30,000 |
Notes Payable | 60,000 |
Prepaid Insurance | 16,000 |
Rent Expense | 24,000 |
Retained Earnings | 300,000 |
Salary Expense | 100,000 |
Salary Payable | 5,500 |
Sales Revenue | 200,000 |
Supplies | 25,000 |
Supplies Expense | 10,000 |
Unearned Revenue | 12,000 |
Question 1: The note payable was borrowed on March 1st. It is the only interest-bearing liability that the company was involved with this year. What was the interest rate?
Question 2: How much cash did Westerberg collect from its customers, assuming Accounts Receivable on 12/31/13 was $30,000, and the company began the year with no unearned revenue?
Question 3: How much cash did Westerberg pay to its employees, assuming the 12/31/13 balance in salary payable was $10,000?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started