Question
Unadjusted trial balance Account Title Debits Credits Cash 35,000 Accounts receivable 44,000 Supplies 800 Inventory 28,000 Notes receivable 50,000 Interest receivable 1,333 Prepaid insurance 3,750
Unadjusted trial balance | ||
Account Title | Debits | Credits |
Cash | 35,000 | |
Accounts receivable | 44,000 |
|
Supplies | 800 |
|
Inventory | 28,000 |
|
Notes receivable | 50,000 |
|
Interest receivable | 1,333 |
|
Prepaid insurance | 3,750 |
|
Investment | 80,000 |
|
Office equipment | 125,000 |
|
Accumulated depreciation |
| 40,000 |
Accounts payable |
| 43,000 |
Salaries payable |
| 1,500 |
Notes payable |
| 50,000 |
Interest payable |
| 1,500 |
Deferred sales revenue |
| 2,000 |
Common stock |
| 60,000 |
Retained earnings 1/1/21 |
| 126,500 |
Dividends | 4,000 |
|
Sales revenue |
| 242,000 |
Investment revenue |
| 4,333 |
Municipal bond interest revenue |
| 2,000 |
Cost of goods sold | 150,000 |
|
Salaries expense | 20,400 |
|
Rent expense | 12,000 |
|
Depreciation expense | 10,000 |
|
Interest expense | 1,500 |
|
Supplies expense | 1,800 |
|
Insurance expense | 2,250 |
|
Advertising expense | 3,000 | |
Income tax | - | |
Totals | 572,833 | 572,833 |
What would the following adjusting entrys be:
- The controller mistakenly recorded the payment of a $60,000 leasehold improvement as rent expense on 7/1/2020. The lease is for 15 years.
- You discover that the company entered into a cryptocurrency transaction. The company made a sale transacted in bitcoin worth $12,000 for product costing $10,000 in November 2021. No transaction was recorded yet because the controller is unsure how to record the transaction and is waiting for your recommendation.
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