The December 31, 201, unadjusted trial balance for Demon Deacons Corporation is presented below. At year-end, the following additional information is available: a. The balance of prepaid rent, $7,200, represents payment on October 31, 2015, for rent from November 1,
The December 31, 201, unadjusted trial balance for Demon Deacons Corporation is presented below.
At year-end, the following additional information is available:
a. The balance of prepaid rent, $7,200, represents payment on October 31, 2015, for rent from November 1, 2015, to April 30, 2016.
b. The balance of unearned revenue, $2,900, represents payment in advance from a customer. By the end of the year, $900 of the services has been provided.
c. An additional $1,200 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2016.
d. The balance of office supplies, $2,700, represents the amount of office supplies on hand at the beginning of the year of $1,500 plus an additional $1,200 purchased throughout 2015. By the end of 2015, only $1,000 of office supplies remains.
1. Update account balances for the year-end information by recording any necessary adjusting entries. No prior adjustments have been made in 2015.
2. Prepare an adjusted trial balance as of December 31,2015.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Debit $12.000 10,500 7,200 2,700 Credit Accounts Cash Accounts Receivable Prepaid Rent Supplies Uneamed Revenue Common Stock Retained Eamings Service Revenue Salaries Expense S2,900 15,000 6,300 33,200 25,000 S57,400 S57,400
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1 a Debit Credit Rent Expense 2400 Prepaid Rent 2400 Adjust prepaid rent b Debi…View the full answer
A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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