Consider the following:

Vancouver Computing

Trial Balance, December 31, 20X0 ($ in thousands)

The following information had not been considered before preparing the trial balance:
a. The $100,000 note receivable was signed by a major customer. It is a 3-month note dated November 1, 20X0. Interest earned during November and December was collected in cash at 4 pm on December 31. The interest rate is 6% per year.
b. The Prepaid Insurance account reflects a 1-year fire insurance policy acquired for $12,000 cash on September 1, 20X0.
c. Depreciation for 20X0 was $18,000.
d. Vancouver Computing paid wages of $12,000 in cash at 5 pm on December 31.

Required
1. Enter the December 31 balances in T-accounts in a general ledger. Number the accounts. Allow room for additional T-accounts.
2. Prepare the journal entries prompted by the additional information. Show amounts in thousands.
3. Post the journal entries to the ledger. Key your postings. Create logical new account numbers as necessary.
4. Prepare a new trial balance, December 31,20X0.

Transcribed Image Text:

Balance Deblt Account Number 10 20 21 30 40 70 70A 80 100 110 130 150 160 170 Account Titles Cash Accounts receivable Note receivable Inventory Prepaid insurance Equipment Accumulated depreciation, equipment Accounts payable Paid-in capital Retained earnings Sales revenue Cost of goods sold Wages expense Miscellaneous expense Credit $60 115 100 130 12 120 $30 140 65 182 950 550 200 80 $1,367 1,367