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ulated depreciation Interest revenue 337,524 Inventories Additional paid-in capital ertising expense nes and leasehold improvements 63.463 203,621 20,122 Land Long-term debt Long-term notes receivable Other

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ulated depreciation Interest revenue 337,524 Inventories Additional paid-in capital ertising expense nes and leasehold improvements 63.463 203,621 20,122 Land Long-term debt Long-term notes receivable Other assets Cost of sales Depreciation expense 732,391 39,965 320,480 Retained earnings 148,789 Other long-term liabilities Prepaid expenses and other current assets Rent and utilities expense ent General and administrative expenses Income tax expense Income tax receivable ncome taxes payable Restaurant and franchise sales revenue 40,940Salaries and benefits expense Short-term notes receivable 9,637Unearned revenue 1. Prepare an adjusted trial balance. 2. How did you determine the amount for retained earnings? Recording Adjusting Entries (AP4-2) All of the current year's entries for Zimmerman Company have been made, except the following adjust- ing entries. The company's annual accounting year ends on December 31 a On September1 of the current year, Zimmerman collected six months' rent of $8,400 on storage P4- LO4 At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,400. space b. On October I of the current year, the company borrowed $18,000 from a local bank and signed a one- year, 12 percent note for that amount. The principal and interest are payable on the maturity date. c Depreciation of $2,500 must be recognized on a service truck purchased in July of the current year at a cost of $15,000. d Cash of $3,000 was collected on November of the current year for services to be rendered evenly over the next year beginning on November I of the current year. Unearned Service Revenue was credited when the cash was received. rty insurance, e. On November 1 of the current year, Zimmerman paid a o s9,000, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount. . The company earned service revenue of $4,000 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded g. At December 31 of the current year, wages earned by employees totaled $14,000. The employees will be paid on the next payroll date in January of the next year. On December 31 of the current year, the company estimated it owed $500 for this year's property taxes on land. The tax will be paid when the bill is received in January of next year

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