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VII. Problem #3 (24 points) ne ledger accounts given below, with an identification number for each, are used by Dalton Company. instructions: Prepare appropriate adusting

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VII. Problem #3 (24 points) ne ledger accounts given below, with an identification number for each, are used by Dalton Company. instructions: Prepare appropriate adusting entries for the year ended December 31, 2001, by replacing the appropriate identification numbers in the debit and credit columns provided and the dollar amount in the adjoining column. Item is given as an example. 1. Notes Receivable 2. Accounts Receivable 3. Interest Receivable 4. Supplies 5. Prepaid Insurance 6. Equipment 7. Accumulated Depreciation ---Equipment 8 Salaries Payable 9. Interest Payable 10. 11. 12. 13. 14. 15. 16. 17. 18. Unearned Service Revenue Notes Payable Interest Revenue Service Revenue Depreciation Expense-Equipment Salaries Expense Interest Expense Supplies Expense Insurance Expense Account(s) Debited Account(s) Credited Dollar Amount $500 12 Entry Information 0. Interest of $500 is accrued on a note receivable at December 31, 2001. 1. Dalton has three employees who earn $120 per day per person. At December 31, three days' salaries have been earned but not paid. 2. A customer paid Dalton $10,000 on December 1, 2001 for services to be rendered from December 1 through January 31, 2002. The receipt was credited to a liability account. 3. Dalton purchased equipment costing $48,000 on January 1, 2000. Monthly depreciation is $1,000. 4. Dalton provided services to a customer in 2001 at a fee of $400. This fee has not yet been received or billed. 5. Dalton started the year with no supplies on hand. They purchased $8,000 in supplies during the year and have $3,000 on hand at December 31. Supplies were debited to an asset account when purchased. 6. Dalton paid $9,000 for a three-year insurance policy on July 1, 2001, debiting an asset account at that time. 7. Dalton borrowed $20,000 by signing a three-month, 12% interest, note payable on December 1, 2001. 8. Dalton purchased marketable securities on October 1, 2001. Interest of $400 per month has been earned but not received prior to December 31

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