Question
The ledger of Luke, Inc. on March 31st includes these selected accounts before adjusting entries are prepared. Prepaid Insurance: $18,000 Supplies: $3,000 Unearned Service Revenue:
The ledger of Luke, Inc. on March 31st includes these selected accounts before adjusting entries are prepared.
Prepaid Insurance: $18,000
Supplies: $3,000
Unearned Service Revenue: $12,000
An analysis of the accounts shows the following:
- Insurance expires at the rate of $600 per month.
- Supplies on hand total $1,400
- During March, services were performed for 20% of the unearned revenue.
Before these adjusting entries, retained earnings is $15,000. After making the adjusting entries, what would be ending retained earnings?
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Financial Accounting
Authors: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello
17th edition
978-1259692390
