Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Audit And Assurance 2022

Authors: Nick Blackwell, Emile Woolf International

1st Edition

1848439326, 978-1848439320

More Books

Students also viewed these Accounting questions