Unit 3 Chapter 3 Assignment

Problem 1:

The unadjusted trial balance of Inaknot Insurance Corp. includes the following account balances at December 31, 2020, its fiscal yearend. Assume all accounts have normal debit or credit balances.

Prepaid insurance

Truck

Unearned commissions revenue

Rent earned

Advertising expense

Salaries expense

Supplies expense

$1,800

18,000

9,000

0

5,000

25,000 900

The following information is available:

a.A physical count indicates that $200 of supplies have not been used at

December 31.

b.The prepaid insurance consists of a oneyear policy, effective October 1.

c.The truck was purchased on July 1; it is expected to have a useful life of 6 years. No depreciation has been recorded during the year.

d.The unearned commission revenue at December 31 is $7,500.

e.Two days of salary amounting to $200 remain unpaid and unrecorded at December 31; the amounts will be included with the next Friday's payment, which will be in January.

f.Rental revenue of $300 has not yet been received for a sublet of part of a warehouse for 2 weeks during December.

g.A $300 bill for December advertising has not yet been recorded.

adjusting entries at December 31, 2020.

General ledger account numbers and descriptions are not necessary.