Question
The unadjusted trial balance for Cullumber at its year end, April 30, 2021, is as follows: CULLUMBER Trial Balance April 30, 2021 Debit Credit Cash
The unadjusted trial balance for Cullumber at its year end, April 30, 2021, is as follows:
CULLUMBER Trial Balance April 30, 2021 | |||
---|---|---|---|
Debit | Credit | ||
Cash | $12,300 | ||
Accounts receivable | 8,800 | ||
Prepaid rent | 4,900 | ||
Equipment | 26,880 | ||
Accumulated depreciationequipment | $6,720 | ||
Accounts payable | 6,200 | ||
Notes payable | 13,000 | ||
Unearned revenue | 1,400 | ||
T. Muzyka, capital | 28,955 | ||
T. Muzyka, drawings | 4,500 | ||
Service revenue | 14,500 | ||
Salaries expense | 9,600 | ||
Interest expense | 715 | ||
Depreciation expense | 3,080 | ||
$70,775 | $70,775 |
Additional information:
1. | $600 of the unearned revenue is to be recognized because the related gardening services have been provided by April 30, 2021. | |
2. | The equipment has an estimated useful life of eight years. | |
3. | Interest on the note payable is due on the first day of each month for the previous months interest. The note payable has a 6% annual interest rate. |
Prepare closing entries for the year ended. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started