Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The unadjusted trial balance for a company as of December 31, 2015 appears below. Debit Credit Cash $1,200 900 Accounts Receivable Prepaid Insurance Supplies Land

image text in transcribed
image text in transcribed
image text in transcribed
The unadjusted trial balance for a company as of December 31, 2015 appears below. Debit Credit Cash $1,200 900 Accounts Receivable Prepaid Insurance Supplies Land Office Furniture 900 2,000 10,000 4,500 Accounts Payable 900 Unearned Revenue 1,500 Note Payable 5,500 Common Stock 3,000 Retained Earnings 7,400 Dividends 1,100 Service Revenues 4,100 Rent Expense 600 Salaries Expense 1.200 $22,400 $22,400 Additional Information: 1. The Company paid $900 for a one-year insurance policy on July 1, 2015 2. The office furniture was purchased on January 1, 2015 and is expected to have a nine-year life and no salvage. Depreciation for 2015 has not been recorded 3. The unearned revenue account was created when the Company was paid $1,500 for services to be rendered. Half of these services were rendered on December 31, 2015 4. The note payable represents a 8 month, 8% loan obtained from The Bank & Trust on October 1, 2015 5. The Company paid $600 on November 1, 2015 as annual rent for its warehouse. This amount was debited to rent expense. 6. The Company operates five days per week (M-F) with a weekly payroll of $500. The Company pays its employees every Friday December 31, 2015 is a Wednesday. These wages have yet to be recorded. 7. Supplies on hand at December 31, 2015 had a cost of $600. 7. Supplies on hand at December 31, 2015 had a cost of $600. 6. The correct adjusting entry for number "1" above includes a A. Debit to Insurance Expense for $900 B. Debit to Prepaid Insurance for $450 C. Debit to Insurance Expense for $450 D. Credit to Prepaid Insurance for $900 QUESTION 6 Using the information from above... The correct adjusting entry for number "4" above includes a A. Credit to Interest Expense for $110 B. Debit to Interest Expense for $110 C. Debit to Interest Payable for $110 D. Credit to Interest Payable for $290 QUESTION 7 Using the information from above... The correct adjusting entry for number *5" would be A. Debit to Prepaid Rent for $500 B. Debit to Rent Expense for $500 C. Credit to Rent Expense for $100 D. Debit to Prepaid Rent for $100 Using the information from above... The correct adjusting entry for number "5" would be A. Debit to Prepaid Rent for $500 B. Debit to Rent Expense for $500 C. Credit to Rent Expense for $100 D. Debit to Prepaid Rent for $100 QUESTION 8 Using the information from above... After adjustment, the balance in the Salary Expense account is A. $1,200 B. $300 C. $900 D.$1,500 E. so QUESTION 9 Using the information from above... Net Income after Adjusting entries for the year-ending December 31, 2015 is A. $790 B. 540 C.$3,250 D. $590 E. $2,690

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

Cost Accounting

Authors: James A. Cashin, Ralph S. Polimeni, Sheila Handy

3rd Edition

0070110263, 9780070110267

More Books

Students also viewed these Accounting questions