Tracy, Inc. adjusts its books each month but closes its books at the end of the year. The trial balance at July 31 before adjustments is as follows:

	Debit	Credit
Cash	$12,920
Accounts Receivable	9,620
Supplies	1,400
Prepaid Insurance	3,120
Equipment	26,000
Accumulated Depreciation - Equipment		$10,400
Unearned Service Revenue		6,500
Capital Stock		7,190
Retained Earnings		23,500
Dividends	1,560
Service Revenue		16,510
Wages and Salaries Expense	7,800
Utilities Expense	380
Rent Expense	1,300
	$64,100	$64,100

46. Refer to the trial balance for Tracy, Inc.

On July 31, the amount of supplies on hand is $520. What amount is reported in the July income statement for supplies expense?

$520

$1,400

$1,920

d. $880

47. Refer to the trial balance for Tracy, Inc.

Employees are owed $750 for services since the last payday in July, to be paid the first week in August. The amount to be reported in the July income statement for salaries expense is:

$750

$8,550

$7,050

$7,800

48. Refer to the trial balance of Tracy, Inc. (Round calculations to the nearest dollar.)

If the equipment had an estimated useful life of five years and no salvage value, what is its book value at July 31, after the proper monthly July adjustment is recorded?

a. $10,400

b. $25,567

c. $15,167

d. $10,833

f

On July 1, Tracy paid four months in advance for insurance. Which of the following is included in the adjusting entry at July 31?

An increase to Prepaid Insurance for $780.

A decrease to Prepaid Insurance for $2,340.

An increase to Prepaid Insurance for $2,340.

A decrease to Prepaid Insurance for $780.

50. Refer to the trial balance for Tracy, Inc.

According to contracts, $4,810 of Unearned Service Revenue has been earned in July. Which of the following is the correct amount of Service Revenue to be reported in the July income statement?

a. $20,410

b. $11,700

c. $21,320

d. $16,510