The following information is related to Boston accounts for the year ended December 31, 2012. NO adjustments
Question:
The following information is related to Boston accounts for the year ended December 31, 2012. NO adjustments have been made to the accounts prior to this. Based on the information presented, write the name of the accounts to be debited and credited and the dollar amount of the entry:
The office supplies account has a debit balance of $4,300. Supplies on hand on this date are $2,000
At the end of the year there is an unrecorded telephone bill for December for $360.
Depreciation on the company's equipment was $3,500 for the year.
Accrued salaries at December 31 amount to $1500.
The general ledger shows a note payable dated November 1 on which $900 interest will be paid on January 31, 2013.
The company purchased a one year insurance policy on July 1 for $2000. The amount paid was debited to prepaid insurance.
The unearned fees account has a credit balance of $10000. By December 31, $6000 of this amount has been earned.
The company uses the allowance method for recording doubtful accounts. The company estimates the 1% of its $600,000 net sales will be uncollectible.
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn