Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 (15 Points . 55 Minutes) S, Company prepares annual financial statements. Below are listed some selected accounts and their balances in the December

image text in transcribed
Question 2 (15 Points . 55 Minutes) S, Company prepares annual financial statements. Below are listed some selected accounts and their balances in the December 31 before any adjustments Office Supplies 4,000 - Prepaid insurance 24,006 - Equipment 120,000 - Unearned revenue 15,000 - Salaries expense 4,500 - Prepaid rent 12,000 - service revenue 120,000 - N/P 10,000 - A/R 20,000 - interest revenue 4,500 - Advertising expense 2,500 Additional information: 1-A physical count of office supplies revealed $1,000 on hand on Dec, 31 2-A two-year life insurance policy was purchased on July, 1 3- Office equipment depreciated $6,000 per year. 4-The amount of rent earned was 3,000 5- Salaries 5,000 not paid yet 6- Rent paid at 1/7 covers one year 7- service revenue on account 5,000 8- Annual interest rate for N/P10% and signed it at July, 1,2019 9- Interest revenue 2,000 not recorded yet 10- Advertising expense 1,500 not paid yet Required: Prepare the adjusting entries at Dec, 31,2019

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

Accounting Reform In Transition And Developing Economies

Authors: Robert W. McGee

1st Edition

0387257071, 9780387257075

More Books

Students also viewed these Accounting questions