The unadjusted trial balance for a company as of 31 December 2015 is shown below.

	debt	Credit
in advance	$1,200
Accounts receivable	900
prepaid insurance	900
Supply	2.000
Kara	10.000
office furniture	4.500
Accounts payable		900
unearned income		1.500
debt securities		5.500
stock		3.000
Retained earnings		7.400
dividends	1.100
Service Revenues		4.100
Rent	600
Salary expenses	1.200
	$22,400	$22,400

Additional Information:

1. On July 1, 2015, the company paid US$900 for a one-year insurance policy.

2. The office furniture was purchased on January 1, 2015 and is expected to have a life of nine years and be free of scrap. No depreciation has been recorded for 2015.

3. The unearned income account was created when $1,500 was paid for services rendered to the Company. Half of these services were performed on 31 December 2015.

4. Note payable represents an 8-month loan of 8% received from The Bank & Trust on 1 October 2015.

5. The company paid USD 600 as annual rent for its warehouse on 1 November 2015. This amount is debited to rental expense.

6. The company operates five days a week (MF) with a weekly payroll of $500. The company pays its employees every Friday. Wednesday, 31 December 2015. These fees have not yet been recorded.

7. The cost of materials on hand at December 31, 2015 was $600.

Using the information above

Determine the balance in Salary Expense account after adjustment.

Answer rating: 100% (QA)

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