Trust Insurance Company is in the process of closing its books for the year ended December 31. Year 2 The following business evens are not accurately reflected in Trust Company December 31, Year 2, 2. Trust Company depreciates its property, plant and equipment using the straight line method over 10 years period. The property, plant and equipment had an original cost of $20,000 and salvage value of Question 2 unadjusted trial balance. 1. The financial controller determined that half of the recorded rent expense is related to learn $5,000 3. Urust Company uses the percentage of sales method to determine the bad debt expense. The Uncollectable accounts receivables for year 2 was estimated to be 0.25% 4. On December 31, year 2, a customer declared bankruptcy and its account receivables of Suss determined to be uncollectable. s Life insurance premiums for the period ended December 31, Year 2 of $650 for key members of management are included in prepaid expense. 6. Interest of $300 was earned and outstanding on notes receivables during year 2The note receivable is due at the end of year 5. 7. Income tax for year 2 are estimated to be $3,000. Based on the business events above, calculate the adjustments necessary to prepare adjusted trial balance by entering the appropriate debit and credit amounts in the table next page. Enter the debit adjustments in positive values and credit adjustments in negative values. The last step to calculate the Adjusted trial balance total as of December 31, year 2. Cr. Are rec Trust Insurance Company is in the process of closing its books for the year ended December 31. Year 2 The following business evens are not accurately reflected in Trust Company December 31, Year 2, 2. Trust Company depreciates its property, plant and equipment using the straight line method over 10 years period. The property, plant and equipment had an original cost of $20,000 and salvage value of Question 2 unadjusted trial balance. 1. The financial controller determined that half of the recorded rent expense is related to learn $5,000 3. Urust Company uses the percentage of sales method to determine the bad debt expense. The Uncollectable accounts receivables for year 2 was estimated to be 0.25% 4. On December 31, year 2, a customer declared bankruptcy and its account receivables of Suss determined to be uncollectable. s Life insurance premiums for the period ended December 31, Year 2 of $650 for key members of management are included in prepaid expense. 6. Interest of $300 was earned and outstanding on notes receivables during year 2The note receivable is due at the end of year 5. 7. Income tax for year 2 are estimated to be $3,000. Based on the business events above, calculate the adjustments necessary to prepare adjusted trial balance by entering the appropriate debit and credit amounts in the table next page. Enter the debit adjustments in positive values and credit adjustments in negative values. The last step to calculate the Adjusted trial balance total as of December 31, year 2. Cr. Are rec
