Question

The unadjusted trial balance for GLP Corporation appears on the next page.
End-of-period analysis revealed the following:
a. The market value of equipment had decreased by 30 percent of its original cost. Depreciation for the quarter totaled $1,000.
b. The note payable was signed on August 1, 20x4. Its interest rate was 10 percent, and no interest had been recorded since the signing.
c. Unpaid employee wages at September 30 totaled $1,000.
d. Deferred fees represented a consulting contract signed at the beginning of September. The contract’s duration is three months, and the work is spread evenly throughout the contract period.
e. Supplies on hand totaled $150.
f. The market value of capital stock had increased by 15 percent.
g. Actual bad debt write-offs during September were $300; 1 percent of sales will likely become uncollectible in the coming period.
Prepare the required adjusting entries based on the preceding information. Then, prepare an adjusted trial balance.


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  • CreatedAugust 06, 2015
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