Answer the following questions. 

1. If interest expense relates to six months of interest expense on a 10% note payable, what is the amount of the note payable?

 2. What was the adjusting journal entry to accrue unpaid, but incurred salaries, on December 31?

 3. How many months remain in the 12-month corporate client contract? months

 4. What amount of supplies was purchased during the year? 

5. What was the price of the two-year insurance policy signed on September 1? 

 6. By how much did the current policy's monthly premium increase over the prior policy's monthly premium?

Transcribed Image Text:

Below is an adjusted trial balance (partial) for Lazer Tag Inc. as of December 31. Adjusted Trial Balance (Partial) December 31 Account Debit Accounts receivable $20,000 $ Supplies 4,500 Prepaid insurance 3,800 Deferred revenue Salaries payable Interest payable Sales revenue Event revenue Salaries expense Supplies expense Insurance expense Interest expense Acct. No. 104 106 108 160 202 208 400 405 502 510 515 520 Additional information 100,000 3,500 2,160 1,000 Credit 3,300 4,000 1,000 400,000 9,900 a. During the year, a corporate client paid a 12-month event fee of $13,200 cash for one planned event per month at Lazer Tag to be applied over 12 months. b. Supplies available on December 31 of last year were $3,000. c. A two-year insurance policy was purchased on September 1. The policy was paid in full on September 1. Premiums had increased from the prior policy. Below is an adjusted trial balance (partial) for Lazer Tag Inc. as of December 31. Adjusted Trial Balance (Partial) December 31 Account Debit Accounts receivable $20,000 $ Supplies 4,500 Prepaid insurance 3,800 Deferred revenue Salaries payable Interest payable Sales revenue Event revenue Salaries expense Supplies expense Insurance expense Interest expense Acct. No. 104 106 108 160 202 208 400 405 502 510 515 520 Additional information 100,000 3,500 2,160 1,000 Credit 3,300 4,000 1,000 400,000 9,900 a. During the year, a corporate client paid a 12-month event fee of $13,200 cash for one planned event per month at Lazer Tag to be applied over 12 months. b. Supplies available on December 31 of last year were $3,000. c. A two-year insurance policy was purchased on September 1. The policy was paid in full on September 1. Premiums had increased from the prior policy.

Answer rating: 100% (QA)

1 If interest expense relates to six months of interest expense on a 10 note payable what is the amount of the note payable To calculate the amount of the note payable you can use the formula for inte... View the full answer