The following trial balance was taken from the books of Venus Corporation at December 31, 2020:...

Transcribed Image Text:

The following trial balance was taken from the books of Venus Corporation at December 31, 2020: Account Cash..... Accounts Receivable.. Prepaid Rent Note Receivable.... Merchandise Inventory. Unexpired Insurance.. Furniture and Equipment... Accumulated Depreciation.. Accounts Payable.. Common Shares.. Retained Earnings.. Sales....... Cost of Goods Sold.. Salaries Expense.. Totals.......... At year end, the following items have not yet been recorded. 1. Insurance expired during the year, $ 3,000. 2. Depreciation on furniture and equipment, 10% per year. 3. Interest at 9% is receivable on the note for one full year. 4. Prepaid rent used up during the year, $6,000. 5. Accrued salaries at December 31, $ 6,200. Instructions Debit $ 40,000 Credit 106,000 12,800 8,000 54,000 4,800 138,000 15,000 12,600 44,000 65,000 410,000 128,000 53,000 $546,600 $546,600 a) Prepare in good form the necessary adjusting entries, adding any new accounts which you may need. Narratives (explanations) are not required for journal entries. (10 marks) The following trial balance was taken from the books of Venus Corporation at December 31, 2020: Account Cash..... Accounts Receivable.. Prepaid Rent Note Receivable.... Merchandise Inventory. Unexpired Insurance.. Furniture and Equipment... Accumulated Depreciation.. Accounts Payable.. Common Shares.. Retained Earnings.. Sales....... Cost of Goods Sold.. Salaries Expense.. Totals.......... At year end, the following items have not yet been recorded. 1. Insurance expired during the year, $ 3,000. 2. Depreciation on furniture and equipment, 10% per year. 3. Interest at 9% is receivable on the note for one full year. 4. Prepaid rent used up during the year, $6,000. 5. Accrued salaries at December 31, $ 6,200. Instructions Debit $ 40,000 Credit 106,000 12,800 8,000 54,000 4,800 138,000 15,000 12,600 44,000 65,000 410,000 128,000 53,000 $546,600 $546,600 a) Prepare in good form the necessary adjusting entries, adding any new accounts which you may need. Narratives (explanations) are not required for journal entries. (10 marks)

Answer rating: 100% (QA)

Here are the adjusting entries needed 1 Insurance Expe... View the full answer