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The trial balance of balance sheet account of Lancer's, a popular casual dining spot, as of December 3 2019, is as follows: Debits Credits Cash
The trial balance of balance sheet account of Lancer's, a popular casual dining spot, as of December 3 2019, is as follows: Debits Credits Cash $ 10,000 Marketable Securities 15,000 Accounts Receivable 130.000 Allowance for Doubtful Accounts 5 6,000 Food Inventory 20,000 Prepaid Rent 5,000 Prepaid Insurance 4.000 Investments 50,000 Land 80,000 Building 520 500 Equipment 100,000 Accumulated Depreciation 100,000 Accounts Payable 15,000 Income Taxes Payable -D- Accrued Expenses 25,000 Dividends Payable -0- Long-Term Debt 300,000 Capital Stock 130,000 Paid-In Capital in Excess of Par 120,000 Retained Earning (1/ 1/ 2019) 61,500 Additional Information: 1. Dividends declared during 2019 totaled $45,000. Only $20,000 of the dividends declared in 20 have been paid as of December 31, 2019. The unpaid dividends have not been recorded. 2. Operations generated $860,000 of revenue for 2019. Expenses recorded totaled $600,000. Additional adjustments required are as follows: a. The allowance for doubtful accounts should be adjusted to 10 percent of accounts receivable. b. Prepaid insurance of $12,000 is the premium paid for insurance coverage for July 1, 20 through June 30, 2020. C. Unrecorded depreciation expense for 2019 totals $47,000. d. Income taxes have not been recorded. Lance's average rate is 20 percent. e. Prepaid rent of $14,000 is the amount paid for two months' rent; Dec.31, 2019, through January 31, 2020. December portion of rent was not expensed
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