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.

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.

  • CreatedFebruary 20, 2015
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