Question
The December 31, Year 1, unadjusted trial balance for a company is presented below. Credit Debit...
The December 31, Year 1, unadjusted trial balance for a company is presented below. Credit Debit $ 8,400 13,400 5,280 2,400 Accounts Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenue Common Stock Retained Earnings Service Revenue Salaries Expense $ 1,400 11,000 4,400 39,680 27,000 $56,480 $56,480 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $5,280, represents payment on October 31, Year 1, for rent from November 1, Year 1, to April 30, Year 2. 2. The balance of Deferred Revenue, $1,400, represents payment in advance from a customer. By the end of the year, $350 of the services have been provided. 3. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4, Year 2 4. The balance of Supplies, $2,400, represents the amount of office supplies on hand at the beginning of the year of $900 plus an additional $1,500 purchased throughout Year 1. By the end of Year 1, only $640 of supplies remains.
2. Prepare an adjusted trial balance as of December 31, Year 1. Credit Adjusted Trial Balance December 31, Year 1 Accounts Debit Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenue Salaries Payable Common Stock Retained Earnings Service Revenue Salaries Expense Rent Expense Supplies Expense Totals
Answers
Adjusted trial balance
Debit Credit Cash 8400 Account receivable 13400 Prepaid rent (5280*4/6) 3520 Supplies 640 Deferred revenue (1400-350) 1050 Salaries payable 700 Common Stock 11000 Retained earnings 4400 Service revenue (39680+350) 40030 Salaries expense 27700 Rent expense 1760 Supplies expense 1760 Total 57180 57180
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