Question

The following accounts were taken from the trial balance of Cristy Company as of
December 31, 2008:
Sales ................. $90,000
Interest Revenue ............. 5,000
Equipment ............... 46,000
Accumulated Depreciation—Equipment ... 12,000
Inventory ................ 20,000
Advertising Expense ........... 2,000
Selling Expense ............. 6,000
Interest Expense .............. 1,000
Given the information below, make the necessary adjusting entries.
(a) The equipment has an estimated useful life of nine years and a salvage value of $1,000. Depreciation is calculated using the straight-line method.
(b) Of selling expense, $2,500 has been paid in advance.
(c) Interest of $750 has accrued on notes receivable.
(d) Of advertising expense, $620 was incorrectly debited to selling expense.



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  • CreatedApril 07, 2012
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