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The unadjusted trial balance for a company as of December 31, 2015 appears below. Debit Credit Cash $1,200 Accounts Receivable 900 Prepaid Insurance 900 Supplies
The unadjusted trial balance for a company as of December 31, 2015 appears below. Debit Credit Cash $1,200 Accounts Receivable 900 Prepaid Insurance 900 Supplies 2,000 Land 10,000 Office Furniture 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 ries 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. The correct adjusting entry for number "5" would be Debit to Prepaid Rent for $500 Debit to Rent Expense for $500 Credit to Rent Expense for $100 Debit to Prepaid Rent for $100
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