Taslima Hasan is operating her own clinic business, TH Chamber. The trial balance for TH Chamber at
Question:
Taslima Hasan is operating her own clinic business, TH Chamber. The trial balance for TH Chamber at January 31, 2021 is shown below. The company prepares monthly financial statements.
Account Titles . . . . . . . . . . . . . Debit ($) . . . . . . . . . . . Credit ($)
Cash. . . . . . . . . . . . . . . . . . . . . . .14650
Accounts Receivable . . . . . . . . 2300
Supplies . . . . . . . . . . . . . . . . . . . 2200
Prepaid Insurance . . . . . . . . . . . 2700
Equipment . . . . . . . . . . . . . . . . . 6000
Furniture. . . . . . . . . . . . . . . . . . . 6600
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4300
Unearned Service Revenue . . . . . . . . . . . . . . . . . . . . . . . . 2900
Owner's Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21000
Service Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7400
Salaries Expense . . . . . . . . . . . . 7700
Utilities Expense . . . . . . . . . . . . 150
Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6700
Total . . . . . . . . . . . . . . . . . . . . . . 42300 . . . . . . . . . . . . . . . 42300
1. Annual depreciation on equipment is $504. The equipment was purchased on January 1, 2020.
2. Unearned service revenue of $4200 was earned in January, 2021.
3. A count on January 31, 2021 shows $550 of supplies on hand.
4. TH Chamber has separate insurance policies on its equipment and its furniture. Policy A on the equipment, which was purchased on June 1, 2020 for $2736 has a term of 2 years. Policy B on the furniture, which was purchased on January 1, 2021 for $1320 has a term of 2 years.
5. Rent expense incurred but not paid on January 31, 2021 totalled $2470.
6. There are five salaried employees in the company. Salaries are paid every Thursday for the current week. The five employees receive a salary of $700 each per week. Employees work five days a week (Sunday to Thursday) and they do not work on weekends (Friday and Saturday). Assume January 31 is a Tuesday. All the employees work through January 31st.
7. The annual loan interest rate is 14% (The loan was taken on December 1, 2020).
8. Invoices representing $4400 of services performed during the month have not been recorded as of January 31, 2021.
Prepare the adjusting entries of the followings for the month of January, 2021.
Principles of Accounting
ISBN: 978-0618736614
10th edition
Authors: Belverd Needles, Marian Powers, Susan Crosson